Launch of the Opus Diversifier Dollar Bond
The key features are:-
- A six year product.
- 100% capital guaranteed.
- No charges - 100% of the investment earns income and potential growth.
- The investment is split 50% income and 50% growth.
- Income - annual income is paid of US dollar three month Libor, currently 3.70%, plus 0.60% - reset quarterly.
- Growth - potential growth returns will be paid of 85% of the average rise in an equally weighted basket of assets comprising of:- FTSE 100, NYMEX Crude Oil Futures and USD/GBP exchange rate.
- All income and growth returns may be paid gross.
- Access to the Income element at any time within the six years.
- Minimum investment US $100,000.
Scott Levy, Head of Operations at PIL, comments
"As with our recently launched global multi-asset Overture range of funds, once again we are targeting high net worth individuals.
We believe that this product will prove attractive due to its combination of capital security, income, accessibility and the potential for growth. It is targeted at those people who have dollar deposits earning very little.
So, on the income side US$ deposits having been paying low rates but with this product the rate is enhanced throughout the term. There is also potential for growth and research indicates that all three asset classes in the basket are expected to rise over the next six years.
In addition, we believe that enabling investors to have instant access to the income half of their investment is an attractive feature, as some people may be cautious of tying up the whole of their investment for six years.
Lastly after some five years of uncertainty in the global investment markets capital security is an important factor and at worst investors will still get a 100% return, plus the enhanced interest over six years."
The Opus Diversifier Dollar Bond is 100% capital protected, guaranteed in full by the balance sheet of Abbey National plc (A+/AA- rated). This is a better guarantee than a person would receive for a normal bank account in the UK and other statutory guarantees.
Applications close on 22 September 2005 with the Initial Investment date being 29 September 2005. Funds deposited before 28th September will earn interest at the Feds Funds rate currently at 3.25%.
Income dates are every three months from 29 September 2005 and the maturity date is 29 September 2011.
IFA commission is 3%.
Background to Product Innovations Limited (PIL) www.productinnovations.co.uk
Since its formation in 2002, and its MBO from without the Millfield Group PLC PIL has attracted over £40 million in invested assets through Individual Savings Accounts (ISAs), Personal Equity Plans (PEPs), Self Invested Personal Pensions (SIPPs), Small Self Administered Pension Schemes (SSASs), and cash-based deposit schemes and is established as one of the leading providers of structured investment products in the UK.
PIL has launched 15x structured investment products and provides white labelling product design services for many of the UK’s leading asset managers and a number of leading building societies. It has currently launched the $ based OPUS Diversifier capital Guaranteed Income & Growth deposit it designed with Abbey International, targeted for disenchanted dollar investors.
Product Innovations Limited is launching another new product, targeting the HNWI market, in conjunction with Abbey International.
Called the OPUS Diversifier USD Capital Guaranteed Income and Growth Deposit it is the first of its kind, targeting dollar investors who want the benefit of structured investments available to sterling investors but without the currency conversion risk.
PIL has an operating model which is unique. PIL has direct access to the trading desks of investment banks and the ability to create bespoke products in relatively short timescales. A shorter value chain translates into better products for investors
In 2005, PIL has launched the first of a series of open-ended structured investments. Not only is PIL one of the first to do so but the offering will have the added advantage of three sub-funds for different risk appetites and will use a variety of geared investments, derivatives, and ETFs to create a unique investment opportunity.
The new OEIC will provide access to a range of assets which has only been available to high net worth investors. All traditional tax efficient products will have the ability to access PIL’s new OEIC.
PIL has a reputation for innovation and integrity and is committed to producing structured investments offering attractive returns within clearly defined risk parameters