Merchant Capital has launched its Growth plan: Principal Lock-In, offering the opportunity of an uncapped growth payment based on the increase in FTSE 100.
The five year deal returns offers 1.35 x the uncapped performance of the index at maturity.
On each anniversary, if the index is at or above 110% of its initial level (the principal lock-in), the plan becomes fully capital protected.
However, if index does not reach its principal lock-in level and decreases by more than 50% without recovering to its starting level, capital is at risk.
Morgan Stanley is counterparty for the plan.
John Gracey at Merchant Capital says: "We believe the possibility of full capital protection within this new structured growth plan is an important feature in an environment of considerable political and economic
"Our new plan offers investors the uncapped upside on the FTSE 100 leveraged at the rate of 135%. If the FTSE 100 has increased by 10% on any of the anniversary
observation dates, investors will be fully capital protected (subject to counterparty risk).
The structured product has a minimum investment of £3,000, and is available until 18 June 2010. It is available as an ISA, with commission set at 3%.
The Aviva Investors Multi-asset Funds (MAF) target equity risk rather than absolute volatility. Thomas Wells, Multi-asset Fund Manager, explains that while absolute volatility varies significantly over time, the inherent risk of investing in equities remains relatively constant.
Will remain until completion of OM's managed separation
Dispute over structure of combined group
Financial Guidance and Claims Bill
Favorable tax treatment