Aviva Investors is to launch a third structured product based on the performance of the FTSE 100 next month, after its two predecessor funds gathered over £150m.
The launch follows the firm's Defined Returns funds 1 and 2, for which Aviva says it received "strong demand" of more than £150m since launching in May and October.
The third fund, an Oeic which is Ucits-compliant, offers investors a three-year term at a rate of 18.75%. It launches on Januay 25.
Subscriptions, starting at £1000 for direct investments and £500 for investments made via an Isa wrapper , are possible on the product until 5 March.
The fund allows investors to benefit from rises in shares, and also caps their downside.
The first fund of Aviva's range offers investors 8% a year for the three-year life of the fund, as long as the FTSE is at or above its closing level of 7 August at anniversaries of the fund's launch.
If the FTSE has not halved by the fund's maturing, investors will also receive their intial oulay back.
Its second fund, with a four-year term, offers to pay 32% defined return, plus initial commitments, at maturity of the product, if the FTSE is at or above its level of 11 December this year.
If the FTSE has halved from that level by maturity, investors receive only their initial outlay, and risk receiving more than half their initial outlay if the FTSE has more than halved.
Aviva was not immediately available to comment further on its new product.
