Abbey issues new capital guaranteed bonds and investment plan

Abbey has launched two new capital guaranteed deposit bonds and a new investment plan. These products 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. These 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 2)– a five-year, six day investment linked to the FTSE 100 Index offering a minimum return of 20 per cent and maximum return of 50 per cent. At the end of the term, the sum of 10 six-monthly percentage changes in the FTSE 100 is calculated. If the total is less than 20 per cent, the Bond will pay a return of 20 per cent. If it 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 Triple Security Bond (Issue 1) and Abbey Capital Guaranteed Triple Security Plan (Issue 1) – six-year investments linked to the FTSE 100. If the Index rises over the full term, the return is 100 per cent of index growth, averaged over the final year. If the Index falls by less than 50 per cent from the initial Index level at any time during the first five years, the return is 100 per cent of the percentage change in the Index, averaged over the final year. If the Index falls by more than 50 per cent, the initial capital will be returned.

The Capital Protected Triple Security Plan allows investors to take advantage of their Capital Gains Tax Allowances (£9,200 for the tax year 2007/8).

The Capital Guaranteed Bonds are designed to fit within a wide range of tax wrappers, including ISAs, transferred TOISAs, PEPs, 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.

Abbey recently won Best Structured Products Provider at the Investment Life & Pensions Moneyfacts Awards 2007.

Gary Dale, Head of Intermediary Business Development at Santander Global Banking & Markets said: “In this issue, we have focused on the UK stock market. By offering a minimum return product together with the triple security structures, intermediaries are able to build more efficient risk managed UK Equity holdings with not only capital guarantees, but locked in future returns. It is important that clients are offered real choice to access a core market within their investment portfolios.”

Minimum investment in the bonds and plan is £3,000. No maximum investment. These three products are available until 7 December 2007, unless sold out earlier.