4 June 2004
The new Select Guaranteed Account (SGA) from Zurich gives investors access to any potential growth across the UK equity and residential property markets, backed by the assurance of 100% guarantee on capital.
Created to meet the demand for a simple, innovative product appealing to the more cautious investor, the new Account offers three investment options:
- For clients looking to gain from exposure to the UK residential property market, without the hassle or risk of trading up or buy-to-let, the SGA allows investors to link their investment to the Halifax House Price Index (HHPI).
- Those keen to invest on the back of forecasts of a likely stockmarket recovery can opt to link to the FTSE 100 Index.
- Alternatively, clients can select a combination of both.
In each case they will gain 100% of the growth of both indices over five and a half years, with no initial or annual charges and no early kick out.
The Select Guaranteed Account is a tranche-based, fixed-term bank account being offered as both an onshore version, provided by Dunbar Bank, and offshore version, provided by Zurich Bank International. It will be available through the Zurich Advice Network and to IFAs via Zurich IFA Group. The SGA opens for business on 14 June and closes by 26 July, with an early bird bonus of 0.25% for all applications received before 5 July. The new accounts will be active from 30 July.
The minimum investment for the Select Guaranteed Account is £2,500, with a maximum of £250,000. It 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%.
Paul Wright, Investment Management Director at Zurich, comments; "This account is well timed for a number of investors. For example, Pension Trustees wishing to link their investment to residential property, (which will be allowed under simplified pension rules due in April 2006), can invest now by linking to the HHPI element of the SGA. This is a cheaper, hassle free option which guarantees their capital. Also, because the capital guarantee applies at Index level and we do not offset losses from one index to the other, the account offers a ‘win win’ outcome for those who elect to split their investment between the two indices. From an international perspective, the HHPI option is the perfect choice for those ex pats who still wish to retain a footing in the UK residential property market."
For more information IFAs should ring ZIFA: 0500 546546
Telephone calls may be recorded.
- Ends -
Press Information:
Erica Harper, Fay Ford, Jon Atkins
Tel: 01793 503969/502873/505586
Notes to Editors:
The onshore and offshore versions of the Select Guaranteed Account are offered by Dunbar Bank and Zurich Bank International respectively, both subsidiary companies of Zurich Financial Services. The Account’s 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, although, if the FTSE 100 Index falls or doesn’t grow over the 5½ years, no interest will be earned. The availability period runs 14 June to 26 July 2004. However it is available on a first-come, first-served basis and may well shut early if fully subscribed before the closing deadline. Money cannot be taken out of the account during the term except if the investor dies.
The offshore version is primarily aimed at international clients that are non-UK resident, or UK residents planning to move abroad and be non UK-resident at the time of maturity.
HHPI is non-seasonably adjusted.
Dunbar Bank plc. Authorised and regulated by the Financial Services Authority. Registered in England 966713. Registered Office: 9-15 Sackville Street, London, W1A 2JP. Tel: 020 7437 7844. Telephone calls may be recorded.
Zurich Bank International Limited is licensed by the Isle of Man Financial Supervision Commission to conduct Banking Business. Registered in the Isle of Man 22847. Registered Office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1ET, British Isles.
Zurich Financial Services is an insurance-based financial services provider with a global network that focuses its activities on its key markets in North America and Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. Zurich has offices in more than 50 countries and employs about 62,000 people.
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