In March 2004, we launched a geared version of our High Yield
fund. We created a product that works in the same way as a
geared Property Fund and, due to popular demand, we have
improved it and brought it back to the market.
The major advantages of this fund are:
- Gearing is used to double your equity exposure. There is no loan approval required because the fund, and not the individual investor, is borrowing.
- The loan is non-recourse.
- Loan interest can be offset by dividend income within the fund, there is no need for ongoing repayments by the investor.
- Gains are only taxed after the loan and interest are repaid.
We have arranged excellent loan terms with Bank of Ireland (1.25% over cost of funds).
The management fee is charged on the net asset value of the fund, i.e. there is no charge on the bank’s capital.
The fund is available for regular investments as well as single premium investments.
The fund is open-ended, there is no lock in period and contributions/withdrawals can be made at any time.
Suitability
The Geared High Yield fund is a suitable investment for part of
everyone’s portfolio. The precise percentage will depend on your
personal circumstances and risk appetite. In particular, the fund is
very attractive as a regular investment because it increases your
exposure to quality companies on an ongoing basis.
Provider: New Ireland
- Personal Investments (Smart Funds/Select Savings Plan)
- Personal/Executive Pensions
- Personal Retirement Plan
- Executive Retirement Plan
- ARFs and AMRFs / Self Administered Pensions
- Personal Retirement Bond
- Non Standard PRSAs
