Morgan Stanley uses G7 bonds to guarantee fund

Morgan Stanley has announced plans to launch a five-year income fund based on the FTSE 100 index, using G7 government bonds to mitigate the counterparty risk.

The FTSE 100 Accumulated Income Fund 1 pays semi-annual income payments to investors based on the FTSE falling between 3,200 and 7,500 (intended range), capped at a maximum of 3.37%. If the index falls outside this range then the payments will be adjusted accordingly.

Investors will receive 100% of their initial investment provided the ind