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“Techno, techno, techno”. It has to be a hard job for the marketing departments of structured products to make a new launch sound exciting, especially when the new product is called the Capital Guaranteed Growth Plan 4.
Step forward the marketeers at Cater Allen Bank who brought out the big guns, the 1990s Eurodance act 2 Unlimited. “No, no, there’s no limits,” read the headline on the press release, making reference to a lack of any upper limit placed by the product on possible returns.
A reference to “no value too deep, no mountain too high” would have also worked for the product
By putting no upper limit on returns Cater Allen could have dipped more into the dance track, which managed to top the British charts in 1993. A reference to “no value too deep, no mountain too high” would have also worked for the product, which guarantees the return of the initial investment at maturity and a return of 100% of any growth in the FTSE. (article continues below)
Structured products have come under fire for a lack of transparency but according to Cater Allen this new offering is one of the simplest products available. It calculates the rate of return by comparing the level of the FTSE 100 at the end of its five-and-a-half year term with that at the start of the term. So if the FTSE rose 40% over its term the percentage of the return on the initial investment would also be 40%.
In the words of Ray Slijngaard, one half of the 2 Unlimited duo: “Lemme hear ya say yeah!” (sorry)
