Gartmore is to launch a fixed-term capital protected product in the coming weeks to be sold to NatWe...
Gartmore is to launch a fixed-term capital protected product in the coming weeks to be sold to NatWest customers, writes Leo Bland
The NatWest Protected Isa will be distributed via NatWest branches as well as through the group's tied salesforce. It will not be sold through IFAs initially. The product offers returns linked to the performance of the FTSE 100 with a maximum return of 60% over the five- and a half-year term but the product will pay back the initial capital invested as a minimum should markets fall. Returns will be based on a comparison of the level of the FTSE 100 at the outset with the average level of the FTSE 100 over the final year of the product's life
The product will not be Cat-marked and charges are to be taken out at the outset and are projected to be around 7.5% over the whole term of the vehicle's life. From the start, 95% of the capital will be invested in a bond issue which will provide the guarantees the product offers
The NatWest Protected Isa will have a one month offer period and Gartmore is looking to be able to offer one new issue of the product each month for NatWest customers
Charlie Ricketts, head of UK marketing at Gartmore, said: "Gartmore is providing the product structure with NatWest providing the distribution for its customers. The message that we have been getting for some time is that investors are becoming disenchanted with the level of interest rates they are earning on deposits but some feel they may not be sufficiently infor-med to take the next step of investing in the stock market. The NatWest Protected Isa is a half-way house product for this type of investor
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