Gilliat Financial Solutions, the structured products distributor that is part of the Arbuthnot Banking Group, has launched a new series of "kick-out" structured products.

The Gilliat Kick-out Growth Series is a five year product with a maximum 25 per cent return. On any year’s anniversary where its underlying index - the FTSE - closes equal to or greater than the start value, the product will close. Investors receive a nine per cent return after one year, 16 per cent after two, 21 after three, 24 after four and finally 25 per cent at full term.

While many products offer a set incremental increase - say three or five per cent each year - Gilliat say payouts on this product have been skewed to reflect the increased potential of a kick-out in the first three years.

“The predictions for any recovery have been J, L and now W shaped. Investor sentiment seems to fit the view that there will be some form of recovery, but the challenge is by how much and when… Our analysis shows that the probability of a kickout occurring in the first two years is over 80 per cent,” said Adrian Neave, managing director, Gilliat Financial Solutions.