London Pacific Assurance Limited is launching a guaranteed investment product on 11 February, which ...
London Pacific Assurance Limited is launching a guaranteed investment product on 11 February, which is designed to appeal to risk-averse investors who does not want to lock into a fixed rate for the full term of the investment.
Suitable for individuals, corporate investors or trusts, the seven year sterling-denominated bond offers 5% guaranteed return in the first year followed by at least 3% every following year, however, yield can be taken as income on a monthly, quarterly or annual basis, or can be rolled into the plan for tax deferrment.
London Pacific says it can afford to keep its yield a bit higher than competitors because it gains leverage by running the same administration system as its sister company in the US, which sells annuities and life products.
Brian Lee, Chief Executive Officer of London Pacific Assurance Limited, says: "We believe that the economic outlook for the UK is unclear, particularly because of the potential entry into the euro, where interest rates are already lower and sterling devaluation would be a distinct probability."
"Few investors realise that although Peps and Isas are free from tax during a person's lifetime, on death any Pep or Isa holdings are included in the asset calculation for IHT planning," added Lee.
Minimum lump sum investment on the Jersey-registered bond is £5,000, with 5% commission for IFAs and capital redemption format available where no life assured required.
Contact London Pacific on 01534 607780 for further information.
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