Newly launched fund group Meteor Asset Management has revealed that its first product launch will be a structured product with returns linked to the performance of the FTSE 100 and Nikkei 225 indices.
The Prima growth plan will offer limited capital protection and has a term of up to six years.
It will pay 13 per cent in the first year, provided both indices end the year at or above their opening levels. Should one of the indices fall below the start level, the plan will then run into year two, where if both indices end the year above their opening levels it will pay 26 per cent.
The product aims to return 39 per cent over three years, 52 per cent over four years and so 78 per cent at maturity.
Capital is at risk should one or both indices fall below 50 per cent of their opening levels and closing at that level at the end of every year. Should this occur, capital loss is 1 per cent for every percentage fall in the lower performing index. Minimum investment is £4,000.
Business development director Phil Saunders says: “Given there is 50 per cent downside protection, this gives investors plenty of headroom if the markets undergo a correction in the forthcoming 12 months or so and as a result the investor will benefit from the cumulative effect of this product.”