Union Bank issues five-year cliquet linked to Russell 2000

Union Bank has issued a five-year cliquet growth product for US investors that comes in a certificate of deposit wrapper and is linked to the Russell 2000 Index. Returns can be as high as 100% over the product term after a quarterly cap is taken into account and principal is protected

This is a five-year cliquet growth product from Union Bank that is linked to the Russell 2000 Index and offers principal protection and a minimum return of 2.5% at maturity.

The length of the product term for this type of structure is generally divided into separate time periods - 20 in this case - in which the rise and fall of the index is measured and the sum of which is paid at maturity, subject to minimum and maximum returns.

There is a quarterly cap of 4-5% and therefore the maximum return