UK-based Cater Allen Private Bank has launched a new FTSE 100 Index linked structured product, the Cater Allen Capital Guaranteed Growth Plan 1 – Issue 1.
The bank said that the new product offers investors a six-year FTSE 100 linked investment product which is 100% capital guaranteed at maturity.
The product also offers the benefit of any rise in the FTSE 100 Index, with no upper limit on return. The product provides the possibility for early maturity at the end of years three, four and five of the maximum six-year term, subject to FTSE Index growth on specified observation dates. If the investment matures early, customers receive a fixed payment equivalent to 20% on year three maturity, 30% on year four maturity or 40% on year five maturity of the initial investment, plus the return of initial investment. The growth is not compounded.
The deadline for investment in the new plan is June 19, 2009 and has a minimum investment level of GBP10,000.
Ricardo Marin-Bataller, head of structured products at Cater Allen Private Bank, said: Our new Capital Guaranteed Growth Plan has been developed as a viable investment option in a tumultuous market. Should the plan mature in year six, there is no upper limit on the possible payment, since it is based on the rise in the Index. Even in the event of volatility in the share values of the FTSE 100 the plan offers a 100% capital repayment at maturity, offering investors peace of mind in the knowledge that they will not lose money with this product if they hold it to maturity.
