Jubilee offers averaging-in to smooth peaks and troughs

Jubilee Financial Products has released two new plans for the UK market, a FTSE 100 index linked Regular Income Plan offering a quarterly coupon of 2.5% for a three-year, 2.25% for a five-year and 2.1875% for a seven-year, with capital is at risk; and a capital protected Fixed Return Plan, also linked to the FTSE 100, and offering a 14% fixed return for a three-year option, 27% for a five-year, and 44% for a seven-year.

The initial index on the regular income plan is reached by taking the average of the index level once a month for the first six months, which gives partial protection against a steep decline in the index. The 50% barrier would be breached if the index falls below 1,890.48. Capital will be lost 1:1 if the index falls more than 50% below the initial level and the final level is lower than the initial.

"Averaging smoothes problem times," says Adam Habib, chief executive officer at Jubilee. "Now is