Ulster Bank is offering investors exposure to global equity indices, property and commodities. The firm's treasury bought a call option from Barclays Capital to structure the deal and it is offering the product with full capital protection over either a three-year or five-year term.
A treasury official said Barclays was chosen because of its competitive pricing.
In both versions of the product, 25% of capital invested goes into a deposit account. There is a guaranteed first-year return of 5.25% for the three-year deal and 7.25% for the five-year version. The remaining capital is split equally between a basket of equity indices, the property index of the European Public Real Estate Association which tracks listed European property firms, and a basket of gold, copper, aluminum, nickel and lead. The basket call option offers 80% participation in these underlings.Judith Grant, product manager for Northern Ireland in Belfast, explained the Guaranteed Deposit Account will be marketed through Ulster Bank's branches as well as through associated financial advisors. The aim is to raise GBP10 million (USD18 million) in the deal, which closes at the end of August.
