Yet another tracker bond has hit the market. The latest - the Diamond Tracker Bond - comes from Standard Life and will track the growth potential of the Japanese and European stock markets. The bond guarantees a 100 per cent security on the initial capital invested, with further gains relying on stockmarket returns. Standard will split the bond 50/50 between the Japanese and European markets. It will mature on October 30th, 2002 and the minimum investment is £5,000.

The final value will be calculated using the average value of the first and last six months of the bond's term. Its launch follows other recent offerings from New Ireland and Irish Permanent.

So why so many trackers? Standard estimates that no less than £200 million has been invested in trackers this year by Irish investors. Buoyed by strong returns from many international markets in recent years, Irish investors now see trackers as offering an investment option with an attractive balance of risk and reward. But of course the strength of future returns will depend on market growth.