Plan Summary

The Defined Income Plan is an innovative investment which has been structured for Keydata to provide investors with an attractive alternative to traditional income plans.

The Plan invests in a Bond listed on the Luxembourg Stock Exchange. The underlying assets include a combination of cash and a portfolio of senior life insurance policies - these are US life insurance contracts purchased in the secondary market where the insured individual is aged 65 or older.

• The US Life Insurance Contracts (Insurance Contracts) are bought at a discount to the maturity value. When Insurance Contracts mature, the Bond benefits from the uplift in value between the purchase price and the maturity value.
• The cash element is used to provide liquidity in the Plan in order to pay investors their income and to pay the premiums on the insurance contracts in the portfolio.

The Plan offers investors the opportunity for monthly or annual income with the potential for full capital repayment at the end of the investment term. Alternatively, income can be rolled up to provide a lump sum at the end of the investment term – for simplicity we refer to this as the growth option.

The Plan is not linked to the performance of either commercial property or equities and therefore provides an additional level of asset diversification for investors whose portfolios may be focussed on these more traditional asset classes. This means that the income generated in the Plan is not affected by stock market volatility and is expected to remain stable throughout the investment term.

Benefits at a glance

• Choice of monthly income, annual income or growth.

 

• Three investment terms over 5, 7 or 10 years.

 

• Returns not linked to stock market indices.

• Early investment bonus of 4% p.a. gross interest until 17 December 2008.

 

• 100% allocation of investment capital.

• Underlying assets of Life Insurance Contracts issued by financial institutions with a minimum credit rating of ‘A’. (Source: Standard & Poor’s or equivalent)
 

10 YEAR TERM • 8.25% Annual Income, • 0.688% Monthly Income or • 121% Growth

7 YEAR TERM • 8.00% Annual Income, • 0.667% Monthly Income or • 71% Growth

5 YEAR TERM • 7.75% Annual Income, • 0.646% Monthly Income or • 45% Growth