Nvesta, a U.K. structured investment products boutique, has put together a note combining options on the FTSE 100, the iBoxx Sterling Gilt index and the EPUK, a U.K. property index, with a zero-coupon bond for capital protection. The six-year product, which launches next month, starts with each asset class on an equal weighting. Every three months, the weighting changes depending on the performance of each index over the preceding quarter. Officials at Nvesta declined to name the options counterparty, but said it arranged the structure through a well-known investment bank with a minimum A credit rating.
Graham Devile, managing director of Nvesta in London, said the firm wanted to structure a deal offering investors exposure to non-correlated assets. It chose these indices because they give a broad spread across constituent index sectors and they have a low volatility, he added.
