Inora Life, the offshore life office launched by French bank Societe Generale last week, has announced details of its first product.
The Offshore Generation bond combines a life wrapper with a fixed-term investment fund. The first fund will be an Accumulator growth gund which will aim to achieve capital growth over its five-and-a-half-year term while taking advantage of the offshore tax benefits offered by its Dublin base.
The fund invests in the Nasdaq 100 index. It guarantees the investor a minimum return of 20 per cent over the life of the product. After four years, the performance is evaluated by adding up the growth achieved in the eight six-month periods to that point.
Whichever is greater between 20 per cent and that total is the return the investor will receive. When the term ends, the process starts again and the higher return is paid out.
Inora Life head of UK liaison Dean Marriott says: “The bond offers an excellent opportunity for capital growth. It easily slots into an investors portfolio alongside other tax-efficient onshore vehicles such as Isas.”
Hargreaves Lansdown investment manager Ben Yearsley says: “I cannot get that excited about it. The concept of a fixed life product is flawed. You could get better returns if you invested in a US technology Isa that invested in the Nasdaq.”