The Income Builder Plus – February 2012 still has the fixed barriers popular with previous tranches in the serious, but offers a choice of quarterly income or a one-off growth payment.
The income option currently on the market offers up to 8.2% gross per annum as long as the FTSE 100 stays above the 3,000 level.
Income from this option accrues weekly and is paid on a quarterly basis at 2.05% gross.
The growth option will also accrue on a weekly basis, but pays a single growth payment at the end of the term instead. The capital protection for this option is set at the 3,000 points level too.
Gilliat said its in-house back testing shows the FTSE 100 last crossed the 3,000 level in 1995, meaning if the product had been in existence then, every possible cycle would have paid the full returns.
Adrian Neave, managing director of Gilliat Financial Planning, said: "The Income Builder has been a consistent product in our range since February 2010 and the fixed barrier feature has proven tremendously popular with advisers.
"The growth option has been introduced in recognition of demand for a version of the pay-off that would attract CGT in an investor’s hands, rather than income tax."
The growth option payment will be up to 41.75% gross at the end of its term and the counterparty is Morgan Stanley. Closing date for the plan is 21 February.
