Norwich Union International has launched a campaign aimed at corporate investors that wish to place...
Norwich Union International has launched a campaign aimed at corporate investors that wish to place their deposit-based investments into an offshore bond.
According to the British Bankers Association fourth-quarter statistics, small and medium-sized enterprises held almost £40bn on deposit in 2003. However, with business accounts attracting low rates of interest, many firms are considering longer-term investments with some risks and better potential for their cash reserves.
The campaign will focus on NUI's Core Funds Bond, and particularly on the capital redemption option. This allows increased control over the timing and in some cases the rate at which corporate investors pay tax on any growth on their investment.
The International Core Funds Bond is a lump sum investment bond with a minimum investment of £10,000, e15,000 or $15,000. It aims to increase the value of money invested in a potentially tax-efficient way, over a term of at least five years. Its investment funds have different levels of risk and their value can go down as well as up and are not guaranteed.
It is available on a life or capital redemption basis. The life version, with no fixed term, has lives assured. The capital redemption version, with a 99-year term, has no lives assured, making it particularly suitable for corporate investors.
A comprehensive sales pack has been developed to help intermediaries target this growing market.
Paul Sherlin, marketing director at NUI, said: "We see the corporate market as offering tremendous growth potential for medium to long-term investments and the new pack is aimed at supporting intermediaries in realising that potential.
"There is sometimes confusion as to whether an offshore or onshore bond represents the best option for a client but for corporate investors the position is much clearer. With our new International Core Funds Bond we now have a more attractive product for this market. Its capital redemption option means increased control over when the bond can be cashed in. The wide range of investment sectors will allow intermediaries to target companies looking for a longer-term investment solution rather than just beating cash over the next few months."
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