Abbey launches guaranteed equity bonds

01 March 2006
Abbey has launched a set of capital guaranteed structured deposit accounts in order to adapt to changes in investment markets.

Three new bonds offering guaranteed full return of capital at maturity, as well as other benefits, are now available.

The returns are dependent upon the underlying investment links and are the first in a series, which will be launched throughout the coming months.

Abbey's Capital Guaranteed UK Equity Bond is for a five-year investment and offers 130 per cent of any growth on the FTSE 100 Index, which is capped at 50 per cent maximum return.

The Japanese bond is also for a five-year investment and offers 110 per cent of any growth in the Nikkei 225 Index.

Finally, Abbey's Capital Guaranteed Residential Property Bond is for a five or seven and a half-year investment, offering 100 per cent or 125 per cent of any growth of the Halifax House Price Index.

This bond is marketed in association with Knight Frank Corporate Finance Limited.

Mike Brown, head of retail business development at Abbey Financial Markets, said: "We have paid particular attention to the needs of pension investors and have designed these bonds so that they can be transferred between pensions schemes where permitted by the scheme rules and Inland Revenue practice."

He added: "We feel there are compelling reasons for investors to have medium term exposure to the residential property market and UK and Japanese equities and by offering a capital guarantee we can provide peace of mind as well."

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