Gilliat launches first structured product
Share
The first launch forms part of a new income series offering investors three choices of income linked to either UK equities, commodities or property over a five year term.
The FTSE linked option offers 6.504 per cent AER, paid monthly, the commodity option linked to the S&P GSCI – ER Index offers 7.2 per cent AER paid monthly, while the FTSE EPRA/NAREIT Developed Europe Index offers 7.5 per cent AER, paid monthly.
Issue 1 aims to return capital in full to investors unless the selected index falls by more than 50 per cent during the term of the plan and fails to recover to its starting level.
In such an event capital would be reduced by 1 per cent for every 1 per cent that the index has fallen when the final measurement is made on the maturity date.
Minimum investment is £3,000 and the counterparty is Citigroup which is A rated by Standard and Poor’s, A3 by Moody’s Investors Service and A+ by Fitch as at August 20.
Gilliat has produced an investment guide to explain the product in detail in addition to the product’s term sheet.
Managing Director Adrian Neave says: “The income Series represents a step forward in the marketing of structured products. We want to de-mystify structured product literature by taking a factual and straight forward approach.
“The indices we have chosen provide diversification of risk and return and investors must decide which is suitable for them. We are ensuring that investors understand what our products can, and cannot, do for them.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
