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Timeshare bond offers holiday deal

Keyworld Investments is setting up a timeshare bond to help investors save money on their holidays.

The bond will be targeted principally at the IFA market and provides investors with points that can be exchanged for holidays at more than 3,500 resorts worldwide.

Points are paid out on an ann
ual basis and the initial capital outlay is redeemable in full after seven years.

The bond is the first of its kind and aims to give IFAs a tool for managing a part of clients&#39 expenditure which is normally left untouched.

Minimum investment is £2,000 and annual membership fee is £99.

There is a charge of 15p for every point used. Commission is 3 per cent initialand 0.5 per cent trail.

Keyworld is a new investment company founded last year by a number of senior executives from across the financial services and holiday industries. The board includes former managing director of Johnson Fry Kevin Barker and former Towry Law manager Patrick Murphy.

Keyworld chief executive Keith Barker says: “We believe that IFAs are a logical channel to sell the bond. There are a vast number of investment plans aimed at particular needs such as repaying the mortgage, reducing inheritance tax and sav- ing for school fees but rarely does anyone think long term about planning their holiday expenditure.

“IFAs can now talk with confidence to their clients about a new long-term investment which by any standards is excellent value.”

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