Aviva launches defined returns fund

Launched within an Oeic structure, the three-year fund is linked to the performance of the FTSE 100. The defined return is dependent on the index being equal to or higher than its level on 7 August, at either one of the anniversaries or at maturity, in which event the plan will deliver payment and kick out. On the first anniversary the plan would pay out 8%, on the second anniversary 16% and at maturity 24%. Capital is protected provided the index has not fallen by more than 50% at maturity, in which case capital is lost commensurate with index falls. As the counterparty, HSBC bank wi...