Abbey believes volatile markets may present opportunities

Abbey International, the wholly owned subsidiary of Abbey in the UK and part of the Santander Group feels that the recent fall in the UK FTSE market, which has left the index over 10% down from its peak of 6732 last year, presents an ideal opportunity for sterling investors to consider capital protected accounts as a way back into the UK stock market.

Designed to profit from rises however small in the market after the account’s start or strike date, capital protected products offer investors exposure to an income potential which is designed to beat deposit accounts, whilst at the same time offering 100% protection of the initial capital sum. And with talk of Base Rate cuts this year, any return which beats average deposit rates could be welcome news for savers with growth or income portfolio strategies.

Abbey International has two products that it thinks could produce attractive returns, both at the lower end of the risk spectrum.

Growth oriented investors will receive a 28% return over 3 ½ years, providing the FTSE 100 Index has not fallen from its level when the product commences on 14 March 2008. If on maturity the Index finishes below its closing level on 14 March 2008, investors can relax knowing that they will still receive the full amount of their initial capital back. Returns are paid gross, so UK savers will need to declare these in their normal way, whilst expatriates can refer to their local tax authorities for guidance.

For Income driven savers, the account offers a combination of a guaranteed return of 7% (6.96% AER) in year 1, with the rest of the growth dependent upon the performance of the FTSE 100 Index over the same 3 ½ year period. One third of the initial capital is placed on deposit to earn 7% (6.96% AER), whilst the balance is linked to the performance of the FTSE 100 Index, on which investors will receive 25% growth, providing the FTSE 100 Index has not fallen from its level when the product commences on 14 March 2008. Returns are also paid gross.

Jane Matthews, Head of Marketing & Business Development at Abbey International said, “Many commentators have been predicting a fall in the markets, given the length of time the current bull run has lasted. Now we are seeing markets significantly off their peak, investors can weigh the odds of the market closing above its current level in 3 ½ years time. If it does, they will earn 28% gross return from our Capital Protected Growth account or 25% and 7% gross (6.96% AER) in the first year from the income product. Either way, investors will get their full capital returned, as whatever happens in the markets, the initial capital is protected. ”

For further information on Abbey International’s offshore banking range of accounts, visit abbeyinternational.com.