Aviva unveils Defined Returns Fund 6

Aviva Investors has launched its Defined Returns Fund 6 linked to the FTSE 100.

The fund provides a potential return of 6% per annum. It has a maximum term of five years, but may mature early on its first, second, third or fourth anniversary if the level of the FTSE 100 exceeds, or is equal to the index starting level.

Capital is protected as long the FTSE 100 has not fallen by more than 50% at the time of maturity.

John Clougherty, Aviva Investors UK Fund Services CEO says: "Structured products are one of the options open to investors who, in a low interest rate environment, are looking for better returns than banks and building societies can offer.

"There are also those who would like exposure to the stock market but with an in-built level of protection from loss in case of market volatility.

"Our structured products are carefully balanced to offer positive returns with low levels of risk, and are based on the index that is most relevant to UK investors, the FTSE 100."

The fund is collateralised by AA-rated government bonds held by an independent depositary.

It has been launched within an Oeic structure and is open for investment until 15 October 2010.

The fund has a minimum investment of £1,000, a 7% initial charge, with commission available at 3%. It is not subject to an AMC.