Prudential International has added deposit-based investment plans from Investec Bank to its open-architecture bond, Portfolio Account.
The FTSE 100 Guaranteed Deposit Plus Plan 1 offers a choice of three time horizons with a bull and bear option for each, based on the movement of the FTSE 100 Index.
The bull option pays out if the index finishes equal to or higher than its starting point, while the bear option pays out if it finishes equal or lower.
The initial terms are:
1 year: 5.25% bull or 5% bear
3 years: 27.5% bull or 25% bear
5 years: 55.5% bull or 50% bear
All investment options are available until 29 May 2009.
Richard Leeson, head of UK business development at Prudential International, says: "There has been a lot of interest from IFAs whose clients are buying both the bull and the bear options."
He adds clients buying both know if the market goes up they will receive their money back off the bear option plus a payout on the bull.
Leeson believes many tiered structured products are too difficult for clients to understand, whereas the Investec propositions are simply based on the client and adviser deciding whether they think the market will go up or down.
Leeson says structured products are in demand and the market has grown by about three to four times since last year.
"With interest rates at negligible levels and stock markets around the world still volatile, it's hard to know where to go to find your clients higher returns alongside as much security for their capital as possible," he adds.
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