Quantum offers protected investments as savings rates plummet

Quantum Asset Management has launched two new protected structured products for UK investors, linked to the FTSE 100 index. One investment pays income, whereas the other autocallable product offers a potential 10% return on its first anniversary: both offer 50% capital protection. The distributor is targeting customers looking for income without taking on high levels of risk.

The UK Protected Income portfolio has a five-year life and will pay an annual return of 6%. If the FTSE 100 falls by more than 50% from its level at strike and does not recover by maturity, then capital loss will be 1:1 with the index's decline. The second product, the UK Premium Generator, will mature on its first anniversary with a 10% return provided that the FTSE 100 is above its initial level at strike. It accumulates a 10% coupon for each year that it does not kick out, up to a maximum