Structured product provider Nvesta is offering a new five-year income plan based on the Eurostoxx 50 index.
The plan will offer a minimum income of 4 per cent a year plus a potential 3 per cent bonus paid annually. The bonus will be paid for each year that the Eurostoxx 50 finishes above the initial level.
It will provide 100 per cent capital return on maturity so long as the index does not fall by more than 30 per cent at close of business on any day during the term. If the index does breach this barrier, the capital return will be based on the final level of the index.
The closing date for the plan is April 16 for mini and maxi Isas and direct investments. Applications for Pep/Isa transfers close on April 8.
Nvesta managing director Graham Devile says although the Eurostoxx index has performed poorly for the past three to four years he expects it to recover over the next few years.
Devile says: “There is considerable demand for income products but, due to market conditions to date, it has not been possible to construct a product that offered sufficiently attractive returns. This product has a base income similar to the higher rates offered by the banks and building societies but with the added potential bonus of an additional 3 per cent.”