Gilliat unveils inaugural dual counterparty product

Gilliat Financial Solutions has launched its first dual counterparty product, the Income Builder – October 2011.

The plan has fixed barriers at 3,000 points on the FTSE 100 for both capital protection and income accrual. This tranche offers up to 1.6875% gross per quarter (equivalent to 6.75% per annum) providing the FTSE 100 remains above 3,000 points.

The counterparties are The Royal Bank of Scotland plc and Morgan Stanley B.V.
Adrian Neave, managing director of Gilliat Financial Solutions, said: “Counterparty risk continues to remain an important subject. As an independent provider, we have always been able to offer a range of counterparties to our clients but up until now we’ve always used just one per product. By introducing a dual counterparty product we can offer investors the chance to diversify their counterparty risk even further.

“As with previous tranches, the Income Builder once again offers the potential for quarterly coupons of up to 1.6875% providing the FTSE 100 remains above 3,000 points. The last time we saw such a level was in 1995 so for the past 16 years the product would have paid the full 6.75% per year.”