GE Life is to launch a structured product linked to the fortunes of the Dow Jones Euro Stoxx 50 Inde...
GE Life is to launch a structured product linked to the fortunes of the Dow Jones Euro Stoxx 50 Index over the next three years and two months.
The Income Option Plan, available between 2 September and 11 October, is aimed at retail investors with a minimum investment of £7,000. It is available for Pep transfers and Isas as well as direct investment and pays 3% initial commission.
There are two investment options available, each with varying income, growth and risk levels. Under Option 1 investors have a choice of yearly or monthly income at 10% or 0.78% respectively or 33% total growth. Similarly Option 2 offers 8% annual income or 0.64% monthly income or total growth at 27%. The Dow Jones Euro Stoxx 50 index follows 50 blue chip companies in the eurozone.
Capital is returned in full at the end of the term if the index never falls by more than 20% for Option 1 or 30% for Option 2 from its level on 23 October 2002, the start of the investment date.
However GE Life said that this requirement can be breached once in the first year of the plan without affecting returns to investors.
David Evans, managing director at GE Life, said: 'While this is not a low risk investment, with stock markets as low as they are now, the chance of a further fall of 20% or 30% appears less likely than it was six months ago.'
He added that the product is suitable for investors not wanting direct equity exposure.
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October