Structured products specialists, Gilliat Financial Solutions, has launched its first products aimed at the offshore market.
The Quarterly Income Notes - April 2012 offer a regular quarterly income providing the FTSE 100 and S&P 500 are both above one of the reference levels. The higher reference level is set at 75% of strike levels and offers 1.875% per quarter (USD) whilst the lower reference level is set at 60% of strike levels and offers 1.25% per quarter (USD).
"Falls of up to 40% in the FTSE 100 can still result in a regular quarterly income. The notes also include a capital protection barrier which is set at 60% of the strike level which means that providing both indices are above this level on the end date, capital will be returned in full, subject to counterparty risk," says Gilliat.
The Phoenix Autocallable Notes - April 2012 offer the potential to kick out after year one or, if they are not at the level required for a kick out to occur, the potential for an annual income payment instead. For the notes to kick out, all three indices must be above their strike levels on an anniversary whilst for an income payment, they must be above 70%. Both the early maturity payment and the income payment are 12.25% (USD). The notes are linked to the FTSE 100, S&P 500 and HSCEI and have a capital protection barrier at 50% of strike levels with observations on the start and end dates only.
Commenting on the launches, Adrian Neave, Managing Director of Gilliat Financial Solutions, says: “Integrity and intellect are at the core of our business. This is reflected in our pragmatic approach to product development. Our products are designed to work, not to provide an eye watering coupon deliberately engineered to entice inexperienced investors with little regard to the risk/reward profile. We are committed to the belief that investors need professional guidance, hence why our products are only available to professionals.”
Andrew Savill, formerly of Royal Bank of Scotland, was hired in December with a view to establishing the company in the international market and these launches represent the companies first products designed specifically for use offshore.
Both products are available in GBP, EUR and USD and are available until 27 April 2012.
Gilliat Financial Solutions, the structured products distribution specialist within the Arbuthnot Banking Group.
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