Nvesta is launching a new open-ended high income investment aiming to give an annual income of 7.5 per cent gross plus the potential for capital growth.
The Global Titans Income Enhancer allows investors to claim all gains against capital gains rather than income tax. If an investor utilises their whole CGT allowance they can receive up to 8,500 a year tax-free.
The investment is linked to the share price performance of 20 of the largest companies from the Dow Jones Global Titans 50 Index, selected on a quarterly basis.
The income is enhanced by giving up some of the growth potential in return for a fixed percentage payment by restricting th eupside potential to 105 per cent on each share, so the maximum gain in addition to the income withdrawn is 20 per cent per year.
Nvesta business development director Anthony Green says: “There is a strong market for invetsment products offering higher income than can be obtained from high interest deposit accounts. This product offers high income, the potential for further capital growth and a very favourable tax position.”