Abbey launches new issue of capital guaranteed deposit 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:

Abbey UK Equity Guaranteed Capital and Return Bond (Issue 1) – a five-year investment linked to the FTSE 100 Index offering a minimum return of 20 per cent and a maximum return of 50 per cent. At the end of the term, the return is calculated as the sum of 10 six-monthly percentage changes. If the total is less than 20 per cent the bond will pay a return of 20 per cent. If the total is more than 20 per cent, the bond will return the total of the six-monthly percentage changes up to a maximum of 50 per cent.

Abbey Capital Guaranteed US Equity Bond (Issue 1) – a five year investment offering 100 per cent of any growth in the S& P 500 Index.

Abbey Capital Guaranteed Hong Kong Equity Bond (Issue 1) – a five year investment offering 115 per cent of any growth in the Hang Seng Index.

Abbey Capital Guaranteed Japanese Equity Bond (Issue 9) – a five-year investment now offering an increased participation rate of 140 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: “We are seeing a move away from the traditional asset classes such as UK Equity and corporate bonds to some of the more esoteric global markets such as the Far East, Asia and emerging markets. There is also a keen interest re-emerging in the US markets, and the added protection provided by capital guarantees creates additional interest and momentum to clients looking to invest more globally."

"Our NIKKEI 225 plan still remains extremely popular across the IFA marketplace, and with the participation rate being increased to 140 per cent for this new issue, this should make the plan even more attractive to clients looking for some geared exposure to the Japanese markets, with the added benefit of a capital guarantee."

"Minimum return products are still proving extremely popular in the UK. From a tax perspective they are best used within a SIPP or SSAS pension scheme or as an asset within an Offshore Investment Bond.“

Minimum investment in the bonds is £3,000. The bonds are available until 21 September 2007.