Gilliat Financial Solutions has launched a five year growth product linked to the FTSE 100 index.
The Captured Growth (UK Equities) - February 2010 plan offers investors three opportunities to capture growth, up to a maximum of 61.5%.
If the FTSE 100 index is equal to or higher than its starting value at the third, fourth and/or fifth anniversaries of the plan, then investors will be awarded a locked-in 20.5% growth payment for each of these anniversaries independently. This creates a potential return of 61.5% when the product matures.
The product offers 60% soft protection based on observations at the start and end of the plan. Investors' capital will be returned in full if the underlying index does not fall below the capital protection barrier at the end of the investment term, i.e. the FTSE 100 does not fall by more than 40%.
If the end value of the underlying is 40% or more below its start value, then investors' capital will reduced by 1% for every 1% that the index closes below the start value.
Morgan Stanley is the counterparty for the plan.
Gilliat managing director Adrian Neave says: "The Captured Growth product is a simple and ideal mechanism to create good returns from modest market growth. All investors have to decide is whether they think the FTSE 100 index will be higher or lower in three years time followed by a period of a flat or rising market."
"If they think it is going to be higher then they can use Captured Growth as part of their allocation on that belief."
The plan is open for investment until 24 April 2010, set at a minimum of £3,000. It is available for investment through an ISA, SIPP and SSAS, with commission at 3%.
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