Aviva Investors, the UK-based asset management firm, has launched its Defined Growth Fund 1 as the first in a new structured product range for the UK market.

The fund provides exposure to the performance of the FTSE 100 without investing directly in stocks, opting instead to take direct credit exposure by investing in derivatives. In an attempt to allay fears over counterparty risk the fund will invest equally across six different counterparties, each with at least an “A” rating from Standard & Poor’s.

The fund, which has a five-year term, offers a maturity return of 8.5 per cent for each year it is open (not compounded).  It has an auto-call feature which means that it may mature early from its second anniversary on. Initial capital is protected unless the FTSE 100 falls below 50 per cent of its start level during the investment term.

“The Aviva Investors Defined Growth Fund 1 offers the potential for investors to achieve higher returns where they are comfortable in taking diversified exposure to six counterparties,” said John Clougherty, chief executive, Aviva Investors UK Fund Services

“We believe that it will be an attractive option for investors who are aware of their concentration of exposure to single counterparties, and who are looking for a short- to medium-term investment that will complement their existing allocation to the UK stock market.”

In other recent developments at the firm, last month saw the appointment of Beng Eu Lim as head of institutional business development for Asia-Pacific.

Lim joined from Turner Investments, where he led the firm’s investment management efforts. Prior to that, he was with Prudential Asset Management. His new Singapore-based role will see him responsible for Aviva's business development strategy in the region, reporting to both Erich Gerth, the chief executive for global business development, and Tahnoon Pasha, the CEO for Singapore.