Introducing the Avalon Protected Cash ISA

These are difficult times for savers.

Interest rates are at all time lows and the value of tax free savings on assets that arent growing by very much is, to say the least, limited.

Stockmarket investments can potentially provide far greater returns than cash in a normal Cash ISA. Unfortunately, investing in equities normally exposes people to a much higher level of risk. Stockmarkets can be volatile and potentially all of your  capital may be at risk.

So what is Avalon offering you that others can't?

The Avalon Protected Cash ISA invests in the Close Escalator 100 Fund. This is a 'protected fund' which is eligible for Cash ISA's

**This is the only Cash ISA of its type offering access to this Fund**

What is a 'Protected Fund'?

This Fund gives investors exposure to some stockmarket growth, yet with 100% protection from the falls. This means that the fund goes up when the market goes up, but, on a quarterly basis, does not go down when the market goes down. The fund is an authorised unit trust managed by Close Brothers Group plc - amongst the 250 largest companies listed on the London Stock Exchange.

Did you know the subscription limits are changing?

The maximum you can subscribe to a Cash ISA in the current tax year is currently £3,600. This figure increased to £5,100, from 6 October 2009 for those aged 50 and over. For all other eligible ISA applicants it will increase from 6 April 2010. Why not maximise your tax free allowance using a Protected Cash ISA?

How does it work?

The fund smoothes out the volatility of the FTSE 100 share index and regularly locks in profits to achieve steady, consistent returns.

At the beginning of each quarter a protection price is set representing 100% protection of the bid price (the selling price) of units in the fund. The fund objective is that this protection price is the worst price investors will get if they need to sell units at the end of the quarter. The quarter days are the third Friday in March, June, September and December. By protecting the price on a quarterly basis an investment held over two quarter dates will not fall in value.

Once a profit has been made and the next quarter day passed, the protection price is raised to provide 100% protection of your savings and the profit made.

What if things change?

If your attitude to risk changes, and you think you might like more exposure to different types of asset class with the potential for more growth, for a one off cost of £25, we will convert your Protected Cash ISA to a Freedom Stocks and Shares ISA.

Please note that the Close Escalator 100 Fund is not available for a Stocks and Shares ISA. 

Find Out More

Full details of the Avalon Protected Cash ISA together with application forms can be downloaded from the 'Download Literature' section of the website. Please talk to your independent financial adviser to find out how to invest in the Protected Cash ISA.