Cater Allen launches new structured products

Cater Allen Private Bank has launched its latest structured products that are linked to the performance of the FTSE 100 index and will pay up to 30 per cent return on maturity on any rise in the index regardless of how small that rise may be.

The investment returns will be determined by the initial index level of the FTSE 100 and the final index of the plan. The initial index will be taken on the 4 August 2009. The final index level of the plan is calculated by averaging the FTSE 100 index level of the last 6 months of the investment term. This allows for any sudden fluctuations in the index.

The 3 ¾ year term will guarantee the original investment plus a return equal to 15 per cent of the investment, if the FTSE 100 index increases by any amount at from its initial index level. If the final index level is lower or the same as the initial index level, investors are guaranteed to receive their original investment plus a return equal to 0.25 per cent of their original investment.

Meanwhile, the 5 ½ year term will guarantee the original investment plus a return equal to 30 per cent of the investment, if the FTSE 100 index increases by any amount at from its initial index level. If the final index level is lower or the same as the initial index level, investors are guaranteed to receive their original investment plus a return equal to 0.50 per cent of their original investment.

Ricardo Marin-Bataller, Head of Structured Products at Cater Allen Private Bank, commented: "With recent economic reports suggesting that there ‘R' now stands for recovery rather than recession, an investment into these capital guaranteed products, which only require a one point rise in the FTSE, represents great value for money.

"This is also the first product we have offered where the return might be subject to Capital Gains Tax rather than Income Tax. This might benefit investors, because the taxable amount on any gains can be less than income tax rates."

The deadline for investment in the new structured product is 17th July, 2009 and has a minimum investment level of £7200.