Arc looks East with Russian product

Arc Capital and Income has unveiled a new product for UK investors linked to Russian companies trading on the London Stock Exchange. The product began as a bespoke offer for advisory firms and is now being rolled out to retail clients with a minimum investment of £3600.

The five-year product is linked to the performance of the US dollar denominated RDX index, which incorporates 14 Russian blue-chip stocks, including Gazprom, and VTB Bank. The investment will automatically mature after one year if the index is at 90% or more of its initial value at strike, paying the investor a return of 20%. If the index is not at this level, the investment rolls into year two, when the coupon will be 40%. Subsequent payouts will increase 20% until year five, when the payout