Lincoln Financial Group is to offer a structured product with stepped levels of capital growth based on the performance of two investment funds and the FTSE 100.
The Lincoln hindsight bond, to launch by the end of the quarter, will be linked for five years to Norwich Union's property trust, JP Morgan Fleming's sterling liquidity fund and the FTSE 100. Investors will get 50 per cent of the average growth of the best performing of the three, 30 per cent of the second-best and 20 per cent of the third.
Capital is 100 per cent guaranteed regardless of performance. Initial charge is 4.5 per cent. Minimum investment is £5,000. Commission is 4 per cent.
Head of investments Vince Rennie says: “The bond will give investors some asset allocation so it is more like a managed fund. It effectively salts away the benefits so it will be a more stable approach to investing.”
Chelsea Financial Services managing director Darius McDermott says: “It is an interesting way of determining asset allocation on past performance.”