The structured products distribution specialist within the Arbuthnot Banking Group has announced the launch of Income Builder – December 2011, which offers up to 2.025% gross yield per quarter, the equivalent of 8.10% per year.
Income Builder – December 2011 has a fixed barrier feature, which the company has held over from its previous tranche of products.
The income accrual and capital protection barrier are both set at the 3,000 mark on the FTSE 100 and income accrues weekly providing the index remains equal to or above that level.
Coupons are capped at 2.025% per quarter and the maximum payment is only achieved if the daily index close is above 3000 on every weekly observation date during the investment term, however.
Counterparty to the product is Morgan Stanley B.V and the close date to subscribe is 14 December.
Adrian Neave, managing director of Gilliat, said: "Income products continue to be in short supply but great demand. We have taken advantage of recent upward moves in volatility and the temporary hike in bank funding rates to create what we believe is an extremely attractive income plan.”
The product term is five years and the capital is protected as long as the FTSE 100 is above 3,000 when it matures.
The minimum investment is £3,000 and commission is 3%. If the product is held outside a tax wrapper, its gains will be treated as income.
