Cater Allen 200 per cent structured product

Cater Allen Private Bank, part of the Santander Group, has launched a new structured product; the ‘Capital Guaranteed Enhanced Growth Plan 1'. This new product guarantees the return of the initial investment at maturity, and a return equivalent to 200 per cent of any growth in the FTSE 100 Index, capped at a maximum 50 per cent return on the initial investment.

The new structured 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 six 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 20 per cent over the term, the percentage of return on the initial investment will be 40 per cent.

Fernando Gasca, Head of Structured Products at Cater Allen Private Bank, said: "The product is ideally suited for those investors who believe that the FTSE will rise marginally over the term of the product. Investors will benefit from a very high return on what may be only minimal growth in the FTSE.

"While uncertainty is still prevalent in today's market, the long term outlook for FTSE growth is more promising. This product will allow you to benefit from any future economic improvement and 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 13 August, 2010 (or earlier if sold out), and has a minimum investment level of £10,000 and a maximum of £1 million.