Investment boutique Jubilee Financial Products has issued a new version of its investment plan, the Real Growth Plan, which invests in securities issued by UBS.
The plan pays the growth of either the FTSE 100 Index or of UK RPI inflation, whichever is higher.
Jakob Bronebakk, associate partner at Jubilee, says: “Feedback from our first launch was that there was still an appetite for a product that protects against runaway inflation. By using a best-of feature, we ensure that this doesn’t come at the expense of participation in potential market growth.”
The plan is a capital-at-risk product, with capital reduced at maturity if the FTSE 100 Index falls by 50 per cent or more at the close of any trading day during the investment term.
Bronebakk adds: “An additional benefit of the ‘best-of’ structure is the plan can pay the growth in inflation, even if the FTSE 100 has fallen, thus potentially offsetting some, or all, of the capital loss.
“The Real Growth Plan is intended for sophisticated investors who are of a view that the FTSE is likely to grow over the next six years, but who are also worried about the prospects for inflation.”
The product is administered by Bank of New York Mellon.