The UK-based company said the Mariana Global Giants Income Plan is open to until 28 October 2013, and is aimed at investors “frustrated by the lack of readily available income plans”.
The fund, which allows access to the structured product via an insurance bond has a five-year term, is available to investors with a minimum of £100,000 and has an annual charge of 0.75%.
The investment value of the plan at the end of the five year term is linked to the performance of three international stocks – Apple, BP and Sony.
Mariana said the full investment value will be protected “provided these companies are not more than 50% below their start level at the end of the five year term”. At the end of the investment term if one of the stocks has fallen in value by more than 50% below their start level, investors will lose 1% of their capital for each 1% fall.
The insurance wrapper, which is provided by Isle of Man Assurance Group, is a single premium whole of life policy which allows policyholders to withdraw 5% annually from the bond without immediate tax liability.
The structured product will mature after five years. The bond holder then has the opportunity to reinvest for another fifteen years, following the redemption of the fund if they wish to continue to access the 5% annual tax free withdrawal.
The counterparty is Commerzbank AG, which currently has an S&P rating of A-.
According to Mariana managing partner Daniel Hawkins the product is a response to investors frustrated by low returns from traditional income products and who are looking for “tax efficient vehicles that offer the potential for capital appreciation while allowing decent levels of tax free annual withdrawals”.
The company is offering the product through its new distribution division, which launched earlier this year and aims to create a range of structured investments, drawing on its in-house institutional expertise.
Partner Tony King, who came from Merchant Capital – which went into liquidation in January – joined Mariana at the beginning of the year to help set up the new division.
King said that he hoped the division would bring the team’s expertise in derivatives and institutional brokerage to their clients in the financial advisory market and as a result, exposure to the retail space.
Hawkins added: “We have a good insight into how products are constructed, when to focus on selling options rather buying options, to make sure that the most attractive products are being sold. And by integrating our specialisms into the wider business we are able to take a more innovative approach.”
