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Meteor plans early maturity

Meteor Asset Management has brought out the prima growth plan, a capital-protected bond with the potential to mature earlier than its six-year term.

The product is linked to the FTSE 100 index and enables investors to receive 11.25 per cent growth at the end of year one provided the index is at or above its starting level. If it is not, the product rolls on until the end of year two when 22.5 per cent growth is payable if the index is at or above its starting value.

Again, if this does not happen the product will continue. At the end of years three, four, five and six, growth of 33.75,45, 56.25 or 67.5 per cent will be paid respectively on the same basis. At maturity, the product also provides a full capital return provided the index does not fall by more than 50 per cent without returning to at least its starting value by May 29, 2015.

If it does not recover by this date, capital will be reduced by 1 per cent for every 1 per cent fall in the index.

According to the product database on the Structured Retail Products adviser website, there are no similar products with a six-year term that are available to advisers.

Birmingham Midshires has a direct product with an early maturity feature only in year three, which does not provide a good comparison. Investors who are looking for potential maturity each year may prefer slighty higher returns with a shorter maximum term.

Keydata¹s five-year annual kickout plan offers 13.5, 27 40.5, 54 and 67.5 per cent at each of the anniversary dates respectively if the FTSE 100 is at or above its initial value. Its capital protection is offered on the same basis as Meteor¹s plan.

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