Gilliat Financial Solutions, the structured product distributor that is part of the Arbuthnot Banking Group, has launched the Gilliat Growth Builder Series - January 2010, a range accrual product.

The product is based on the FTSE EPRA/NAREIT Developed Europe Index – which follows the performance of listed European real estate companies and REITs – and tracks its performance on a weekly basis. The product then uses a range accrual strategy, whereby the investor accrues a payment for each week that the index is within a plus/minus 45 per cent range of its start value. No payment is accrued in weeks when the index is outside the range on the weekly observation date.

The final payment credited to investors is the sum of all weekly payments with a maximum return of 51 per cent, which is subject to individual tax liability.

Investors’ capital will be returned to them in full if the underlying index has not fallen by more than 45 per cent of its start value at the end date. If, at the end date, the index is less than 55 per cent of its start value, investors lose 1 per cent of their capital for each 1 per cent below the start value that the index closes.

The capital will be invested in securities backed by Morgan Stanley (the counterparty), not directly in the underlying index.

Minimum investment is £3,000 (approx $4,900). The investment deadline is 19 February, with an investment start date of 26 February 2010, end date 26 February 2016, and maturity payment date 18 March 2016.