London-based Aviva Investors has launched its second structured product aimed at UK financial advisors and their clients.

The Aviva Investors Defined Growth Fund 2 offers a return of nine per cent per annum dependent on the performance of the FTSE 100 index, with a defined level of protection against loss of capital as long as the index never falls by more than 50 per cent during the product’s term. The product has a six-year term with the potential to mature early on its first anniversary and annually thereafter.

The fund aims to make a return by investing in derivatives from six financial institutions which have an independent credit rating that indicates a strong ability to pay the return. No more than 20 per cent of the fund is invested in any single institution.

“We created the fund based on feedback from UK IFAs, who reported demand for short- to medium-term investments that are linked to the UK stockmarket and designed in a way that reduced exposure to counterparty risk,” John Clougherty, chief executive of Aviva Investors UK Fund Services, said in a statement.