July 22 2004 Zurich Bank International is launching its International Guaranteed Account, a US Dollar-based, equity-linked guaranteed account on 2 August 2004. The account offers exposure to a 50:50 weighted basket of the S&P 500 and the Nikkei 225 indices and can pay out one hundred per cent of any of the growth in this basket, whilst guaranteeing the return of investor capital.
The Account has been introduced as a result of the offshore Bank's research which indicates that, whilst much of international investors' wealth is in US Dollars, there are fewer of this type of product generally available in Dollars compared to Sterling. This research is backed up by professional adviser and client feedback, which also indicates that there is strong demand for this type of investment in the current, low interest rate environment applicable to traditional US Dollar deposit accounts.
The International Guaranteed Account has a fixed term of 3.5 or 6 years, depending on the performance of the basket of indices. If the basket has grown by 28% or more at the 3.5 year point, the account will close early and the investor will receive their capital plus 28% gross interest (effectively 7.3% per annum compound interest). Otherwise, the account runs for the full 6 years, and the investor will benefit from 100% of any growth in the basket over this period.
Graham Sheward, Managing Director for Zurich Bank International said: "The current exchange rates do not encourage investors to convert their US Dollars to GB Pounds and so we have launched a US Dollar guaranteed account that will appeal to these investors".
"I am confident that this account will prove popular with customers and their advisers as 100% of any growth and 100% capital protection is a very attractive combination".
The International Guaranteed Account is a tranche-based, fixed term bank account with no annual or initial charges and 100% of the funds are invested.
The account has an early bird bonus of 0.25% for customers who invest before 27 August. Applications must be received by Zurich Bank International by 13 September and the account opens on 17 September. The minimum investment for the International Guaranteed Account is USD 5,000 and it is available to individuals, trustees of trusts, pension trustees, nominees of offshore portfolio bonds and corporate investors.
The International Guaranteed Account is available for a limited time only and may close before the deadline so early application is recommended. Individuals interested in applying should contact the Zurich Bank International Relationship Banking Team on +44(0) 1624 671666 for further details and an application form. Alternatively, details along with a downloadable application form are available at www.zurichbankinternational.com.
S&P 500 is a trademark of The McGraw-Hill Companies, Inc, and has been licensed for use by Zurich Bank International Limited. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.
The Nikkei Stock Average ("Index") is an intellectual property of Nihon Keizai Shimbun, Inc. ("The Index Sponsor"). "Nikkei", "Nikkei Stock Average", and "Nikkei 225" are the service marks of the Index Sponsor. The Index Sponsor reserves all the rights, including copyright, to the index.
- ENDS -
Press Information:
Erica Harper, Fay Ford, Jon Atkins on
(01793) 503969, 502873, 505586
Notes to Editors
The International Guaranteed Account is offered by Zurich Bank International Limited, a subsidiary company of Zurich Financial Services. The Account's interest is linked 50:50 to the S&P500 and Nikkei 225 Indices. If the Indices fall or do not grow over the 6 years, no interest will be earned. Zurich Bank International Limited will not deduct tax on interest unless it is required by law to do so.
The availability period runs from 2 August to 13 September 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 use of the word "Guaranteed" in the name of this issue and anywhere in this brochure refers only to the obligation of Zurich Bank International to repay any capital in full and any minimum return. The issue is not guaranteed by any party.
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.
