Gravis launches zero coupon bond fund
Gravis Capital has launched a Zero Coupon Bond Fund, offering expected returns of 10.06% per annum over 31 years.
Gravis is aiming the fund at investors looking for a low volatility, inter-generational wealth transfer solutions. The fund has the added security of an unbreakable lease agreed with the UK government of 31 years.
The fund has an initial subscription of £12,500, with an expected redemption value of £250,000 on maturity in 2042.
Founding partner at Gravis Capital Partners, Stephen Ellis, head of Funds Advisory, says the bond is the perfect solution for inheritance tax planning.
“The continued government erosion of the effectiveness of offshore trusts has left people looking for alternative ways of inheritance tax planning and we believe this sort of vehicle is a perfect solution.
“The Fund will be an attractive investment proposition for parents or even grandparents looking to invest, as part of their inheritance tax planning arrangements, on behalf of their children/grand children, with returns rolling up tax free over the 31-year investment period.
“Young SIPP investors with more than 31 years to retirement will be interested in the offering, along with property owners aiming to repay their mortgage on a 31-year term.”
“This is a long-term investment and investors will not have access, except in exceptional circumstances, to their money until maturity,” adds Ellis.
The fund is open to subscriptions between the 9 February and 19 April 2011.