Prudential International Assurance is offering an offshore cash portfolio bond.
The Prudence portfolio bond capital-redemption option, which has no entry or exit fees, is a single-premium unit-linked contract with no life assured and a fixed term of 99 years.
Investment relationship manager Richard Leeson says it is aimed at low-risk high-net-worth clients aged 50-plus, trustees and companies looking for capital preservation.
He says IFAs often overlook the corporate market, which he describes as untouched. He says companies can earn 3.6 to 4.5 per cent interest on the bond. It also has the benefit that directors do not become tied to the investment and do not need to be named, so a change of directorship does not trigger a chargeable event.
The bond is also available as a life insurance contract.
The minimum premium for new business is £100,000 or the foreign currency equivalent. The minimum top-up is £5,000 or equivalent.