8 September 2003
Due to the overwhelming success of previous tranches, Zurich has made a further £50m available to investors who missed out on earlier opportunities to take advantage of the Zurich Guaranteed Account. When the Account was first offered in April 2003 it was oversubscribed well in advance of the deadline. Demand has been such that further tranches have attracted over £125m to date.
The Zurich Guaranteed Account offers a 100% capital guarantee regardless of the movement of the FTSE 100 Index. The Account has a fixed term of up to five and a half years, but will close on the third anniversary if the FTSE 100 Index has grown by at least 30%, when customers would receive their money back plus 30% gross interest. That’s effectively 9.1% compound interest. Otherwise, the investment continues to the end of its fixed term and investors will earn a return of 100% of the growth in the FTSE 100 Index.
Paul Wright, Investment Marketing Director for Zurich said: “This is the perfect product at the perfect time. In a climate of rising inflation and falling interest rates, a deposit account is not the most appealing investment option. Advisers in ZAN and ZIFA, our tied and IFA distribution channels, have seen huge amounts of business coming in from customers who appreciate the benefits of capital protection, but are disillusioned with their current interest rates. The Zurich Guaranteed Account is a simple concept which investors like and understand. We believe this product represents one of the best investment opportunities in the market today – testified by the fact that customers have voted with their feet and invested far more than we expected.”
The minimum investment is £2,500, with a maximum investment of £250,000. The Account is available to IFAs via Zurich IFA Group and through the Zurich Advice Network. Applications for a share of the £50m tranche can be submitted between 8 September and 20 October, but if the amount is fully subscribed before the deadline, the offer will close early. An ‘early bird’ bonus of 0.25% of the amount invested will be paid into the Account on all investments received before 3 October.
The Account is available to UK residents (including Channel Islands and the Isle of Man), Trustees of trusts, Pension Trustees, nominees of offshore portfolio bonds and corporate investors.
Standard commission for IFAs is 3%.
For more information IFAs should ring: 0500 546546
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Press Information:
Erica Harper,
Zurich Financial Services
Tel: 01793 503969
Notes to Editors:
The Zurich Guaranteed Account is held by Dunbar Bank. The Account interest is linked to the FTSE 100 Index. Under current rules, interest will be paid net of basic rate tax and can be paid gross to non taxpayers. The availability period runs for 6 weeks; from 8 September – 20 October. However it is available on a first-come, first-served basis and may well shut early if fully subscribed before the closing deadline.
Zurich Financial Services is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 50 countries and employs about 64,000 people.
