Inora Life is set to launch Series 2 of its Offshore Generation Bond ' Accumulator Growth Fund.
The launch will consist of two funds, offering a return of 100% of capital plus a minimum additional return over five and a half years.
The euro-denominated fund is linked to the Eurostoxx-50 index and has a minimum additional return at maturity of 10%.
The US dollar-denominated fund is linked to the Dow Jones Global Titans 50 Index and the minimum additional return at maturity is 7%. The minimum returns are to be achieved through the Accumulator Growth Fund's structure. The percentage change in the level of the stock market index is recorded for each of the 22 three-month periods, subject to a cap each period. The quarterly cap is 4.25% for the Dow Jones Global Titans 50 linked-fund and 5.5% per quarter for the Eurostoxx-50 linked-fund.
Investors capital is expected to grow by the sum of these figures, where this exceeds the minimum return. The Dow Jones Global Titans 50 index consists of blue chip stocks. Components are selected from the Dow Jones World index, a broad benchmark covering 95% of the free-float market capitalisation of 34 countries.
Sectors include financial, industrial, consumer cyclical and non-cyclical, technology, energy, and healthcare. Stocks include Allianz, AOL Time Warner, Nokia, Microsoft, Novartis and Royal Bank of Scotland Group.
The Eurostoxx-50 consists of blue chip stocks in the eurozone. Countries include Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. It captures about 60% of the free-float market capitalisation of the Dow Jones Eurostoxx Total Market index, which in turn covers around 95% of the free-float market capitalisation of the represented countries. Stocks include Total Fina Elf, Deutsche Bank, BNP, Philips Electronics and Telecom Italia.
The funds are Dublin domiciled and are suitable for inheritance tax planning and pension planning, as well as for children as the bond can be written in a child's name, according to Inora Life. The bond can also be written in a trust. Assets for both funds are issued and guaranteed by Société Générale. The bond is to be marketed through intermediaries and will be available from 13 January through to the 28 February. Commission will be 3.25%. The minimum investment will be E/US $10,000.
Stuart Williamson, managing director of Expatriate Financial Services, said: 'With all the associated benefits of a Personalised Portfolio Bond the new Inora Life Accumulator Growth Fund Series 2 offers our expatriate client-base an alternative in the short-term to maximise returns in a low interest/low
