At outset, Capital Guaranteed GHI allocates 120% of investors’ capital to SGHI Fund through a leveraging mechanism known as dynamic protection. During the five-year investment term, the allocation level to SGHI Fund could reach as much as 200%.

Additionally, CG GHI has a profit lock-in feature of 3% additional minimum return at maturity for every whole 10% of growth achieved by CG GHI, measured monthly during the investment period.

Standard Bank in Jersey has teamed up with Group colleagues at Standard Asset Management in London to launch the first product of this nature built around one of the Group’s own managed funds.

SGHI Fund is an absolute return fund managed by Standard Asset Management and invests in a diversified portfolio of emerging market debt and corporate high yield fixed income securities.

Herman Wessels, Managing Director for Treasury & Product at Standard Bank in Jersey commented:

“In the current market where billions of dollars are being wiped off the value of global stock exchanges, there is an increasing demand for products which offer safer investment strategies."

"SGHI Fund’s current gross of charges, annualised yield to maturity runs at over 10%, making this both a safe and potentially lucrative investment. In addition to guaranteeing an investor’s capital at maturity, backed by BNP Paribas with a long term S&P credit rating of AA+, this new product potentially provides investors with a combination of enhanced performance and profit protection on growth achieved over the investment period.”

Baldwin Berges of Standard Asset Management in London remarked:

“Private investors often let emotion drive their investment decisions, and end up buying high and selling low. The current climate looks set to follow this trend with the media reporting the fourth quarter of 2007 to be the investment industry's worst on record. For the first time in 15 years the quarter showed a net outflow from UK investment funds for private individuals."

"With the widening of credit spreads, we believe now might be an opportune time for investing in high yield debt instruments. We trust that the addition of a capital guarantee and profit protection mechanism will persuade investors to benefit from an opportunity rather than repeating mistakes from the past.”

Available in US dollars as a tradeable security, Standard Bank’s Capital Guaranteed Global High Income requires a minimum investment of US$100,000. The sales period closes on 18 March, or earlier if fully subscribed.