Cater Allen launches Capital Guaranteed Growth Plan 4

Cater Allen Private Bank, part of the Santander Group, has launched a new structured product; the ‘Capital Guaranteed Growth Plan 4', which places no upper limit on possible returns. This new product guarantees the return of the initial investment at maturity, and a return equivalent to 100 per cent of any growth in the FTSE 100 Index, with no upper limit on the return offered.

The product, which is already open for investment, calculates the rate of return by comparing the level of the FTSE 100 Index at the end of the 5 1/2 year term with the level of the index at the start of the term. So, for example, if the comparison shows that the FTSE 100 Index rose by 40 per cent over the term, the percentage of return on the initial investment will also be 40 per cent.

Fernando Gasca, Senior Investment Strategist at Cater Allen Private Bank, said: "This is one of the simplest structured products available. At the end of the investment if the FTSE 100 Index climbs, your investment matches it. If the FTSE 100 Index does not rise or falls your initial investment is completely guaranteed. After last years rally on the FTSE and the expected economic recovery in the UK, this product allows you to benefit from any further economic improvement without taking the risk of any stock market correction."

The closing index is calculated from an average level of the index taken at 12 stages over the final year to ensure the plan is cushioned from any sudden fluctuations in the FTSE 100. The deadline for investment in the new structured product is 12 March, 2010 (or earlier if sold out), and has a minimum investment level of £10,000 and a maximum of £1 million.