Jersey-based London Pacific Assurance Launches Guaranteed Return Bond Range

Carla Johnson, Investors Offshore.com

19 March 2001

Jersey-based insurance company London Pacific Assurance has announced the launch of three new guaranteed bonds following the success of its Guaranteed Return Bond last year. In a statement released by London Pacific, the company's chief executive officer Brian Lee says: 'The Guaranteed Return Bond range has proved to be very popular with IFAs and risk averse investors raising $50 million in the first ten months of operation. We fully intend to capitalise further on the significant impact made last year.'

The new product range is headed by a three year Guaranteed US Dollar Bond which yields a return of 6.25% per annum with a 19.95% guaranteed growth over 3 years plus return of capital at maturity. There is also the Euro denominated bond with a choice of either three years or five years in duration which yields 5.25% per annum with 29.15% guaranteed growth after 5 years. London Pacific says the yields are paid without deductions of tax thus giving the advantage of tax planning opportunities. There is a partial withdrawal facility of 7.5% per annum which is charge free and commission is 2% for the three year bonds and 3% for the five year bonds.

Instead of derivative instruments or stock market indices the Guaranteed Euro Return Bond invests in euro-denominated investment grade corporate bonds. The minimum investment is 10,000 Euros but investments can also be made in sterling or US dollars. London Pacific advises that the range is suitable for private individuals as well as trusts and companies.

Mr Lee said: 'this product range represents a unique offering for the IFA in terms of a suite of guaranteed investment products. With the current volatility in equity markets, our products offer deposit-beating yields without the risk of capital exposure.'

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