Gilliat Financial Solutions, the structured products distributor that is part of the Arbuthnot Banking Group, has launched a structured product with two fixed terms and three indices.

The 50/50 Deposit Series divides investor capital between two fixed term deposits: 50 per cent capital in a one-year deposit, paying five per cent gross fixed interest, and 50 per cent in a five-year term, paying variable interest based on half the rise in the underlying index.

All capital is backed by The Royal Bank of Scotland, and investors are asked to chose between three RBS indices for their product to follow: RBS UK Balanced Sector Index (UK equities), Environmental Strategy Index (worldwide equities plus solar, wind, water based energy and waste management) and the Commodity Strategy Index (commodities).

“Financial advisors are telling us there is demand from investors wishing to earn higher returns than fixed deposits, but with the certainty that they will receive the return of their original investment. This is exactly what our structured deposit aims to achieve, subject to counterparty risk, and it also further enables advisors to diversify their clients’ exposure to risk,” said Adrian Neave, managing director, Gilliat.