Sarasin has launched the third issue of its guaranteed investment product that invests in a Guernsey-based balanced fund investing in equities, bonds and cash.
GlobalSar Principal Guaranteed Notes Series 3 is structured around Sarasin"s 15 year-old flagship global balanced fund, GlobalSar. It is supported by an unconditional repayment guarantee of the initial principal investment from Rabobank. It will mirror the same terms as the previous Series 2 issue.
The product will pay the investor income distributed semi-annually from the underlying investment in the Sarasin CI GlobalSar sterling balanced fund, with the current gross rate being 2.7%.
All of the capital appreciation on the underlying investment is allowed to accrue to the investor at maturity, so there is no capping. The product aims to deliver investors assurance through the money back guarantee while providing them with the ability to exploit capital appreciation potential if the underlying fund performs well during the product"s five-year term.
The initial charge is 5%, annual management charge is 1.5%, while the guarantee fee is 0.45%. The minimum investment is £7,000.
The fund has daily liquidity. Investors can sell their investments before it matures, subject to an early redemption fee. The closing date for investment is 5 December 2003. An initial commission of up to 3% is payable to intermediaries as well as a 0.25% renewal commission. The first tranche of this product appeared in May 2003, where it was quickly followed by the second.
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