Abbey issues latest capital guaranteed bonds

Abbey has launched a new issue of capital guaranteed deposit bonds. The bonds offer guaranteed full return of capital at maturity and different benefits depending on the link to the underlying investment. They are the latest in the series of continuously available capital guaranteed products from Abbey and are:

The Abbey Capital Guaranteed Residential Property Bond (Issue 8)– a five-year investment offering 110 per cent of any growth of the Halifax House Price Index.

The Abbey Capital Guaranteed UK Equity Bond (Issue 8)– a three or five-year investment 100 per cent of any growth in the FTSE 100 Index, capped at 35 per cent maximum for the three-year term, 120 per cent of the growth in the FTSE 100 Index for the five-year term.

The Abbey Capital Guaranteed Japanese Equity Bond(Issue 8) – a five-year investment offering 120 per cent of any growth in the Nikkei 225 Index.

The Bonds are designed to fit within a wide range of tax wrappers, including ISAs, transferred TOISAs, SIPP and SSAS pension arrangements and Offshore Bonds.

Abbey also offers a special release product design service, subject to investment criteria. This allows IFAs to design capital guaranteed products using different indices and investment terms to meet their clients’ investment needs or to coincide with the maturity of existing client investments.

Gary Dale, Head of Intermediary Business Development at Abbey Financial Markets, said: “This latest issues reaffirms Abbey’s commitment to having a constant presence in this marketplace. Each issue is developed by responding to intermediary feedback.

“We remain positive about the reasons for investors to have medium term exposure to residential property and UK and Japanese equities. By offering a capital guarantee within the product, intermediaries are able to discuss with their clients exposure to different and varied markets, while simultaneously managing the associated risks.”

“Our special release service also continues to be popular and we recently issued a three-year equity participation bond linked to the FTSE 100 and have a number of other bonds in the pipeline. The need for a wider variety of underlying investments is clear from intermediary feedback, and it is our intention to be able to offer structured products across more esoteric asset classes in the future."

Minimum investment in the bonds is £3,000. The bonds are available until 27 July 2007.