Dublin based life office Inora Life is launching the second of its income plans, only two weeks after the FSA issued a consumer warning about the risks associated with high-income style products.
The dynamic income fund 2, which launches on October 1 and closes on November 16, has a minimum investment of £6,000.
It offers 10.75 per cent annual income or 33.75 per cent growth over three years.
It is linked to 25 global stocks selected on the Dow Jones Global Titans index. They include household names such as BP Amoco, HSBC and Microsoft.
Only in year three, from December 13, 2003 until the same day in 2004 does the value of the 25 stocks influence capital return. The value of the stocks is measured daily, with the top 15 removed and only the remaining 10 tracked. As long as the daily average of these stocks does not fall 30 per cent below the recorded price on December 13, 2001, investors get 100 per cent of capital plus whatever growth the stocks record, in addition to the income.
Head of UK liaison Dean Marriott says: “As interest rates fall, there is a great deal of interest in structured products as investors look to them to provide levels of income that are unavailable from conventional bank and building society accounts.”