Abbey launches new capital guaranteed deposit bonds

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

Abbey Capital Guaranteed UK Equity Bond (Issue 9) – a four-year investment linked to the FTSE 100 Index offering 140 per cent of any growth in the FTSE 100, capped at 40 per cent maximum interest return.

Abbey Capital Guaranteed US Equity Bond (Issue 2) – a four-year investment offering 130 per cent of any growth in the S&P 500 Index, capped at 35 per cent maximum interest return.

Abbey Capital Guaranteed Hong Kong Equity Bond (Issue 2) – a four-year investment offering an increased participation rate of 140 per cent of any growth in the Hang Seng Index, capped at 40 per cent maximum interest return.

Abbey Capital Guaranteed Japanese Equity Bond (Issue 10) – a four-year investment now offering an increased participation rate of 160 per cent of any growth in the Nikkei 225 Index, capped at 60 per cent maximum interest return.

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: “Our first tranche of US and Hong Kong bonds has proved very successful and we have seen continued interest from intermediaries in offering some of the more esoteric global markets such as the Far East, Asia and emerging markets. There is also a continued re-emergence of interest in the US markets. By offering added protection through capital guarantees, intermediaries can offer further momentum to clients looking to invest more globally.

Minimum investment in the bonds is £3,000. No maximum investment. The bonds are available until 16 November 2007.