Safety and an early payout
Gilliat’s five-year FTSE-linked, Rabobank-issued structured product had safety and an early kickout written all over it. Both components played their part, with investors paid out 9% and given their capital back early in the middle of March.
Gilliat Financial Solutions produced a five-year product linked to the FTSE 100 index last year and which paid out on March 17. On the strike date, the level of the FTSE 100 was 5,355, and on the first anniversary the underlying index stood at 5,994, which is approximately 12% higher. Investors in this product would have therefore been returned their capital investment plus the fixed 9% return for kickout after year one.
This was a capital-at-risk product, with a soft protection barrier of 50%
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