Fineco, the private banking arm of Basque savings bank BBK, has launched a capital-protected fund linked to the Spanish Consumer Price Index (IPC).
Fon Fineco Inflación FI is a five-year income product that pays a 3% coupon on the first annual observation date. In subsequent year a 1.5% coupon is paid plus 100% of the rise/fall in the inflation rate.
"Spain is one of a few developed countries not issuing inflation-hedged public debt," said Fineco's director of analysis and management , Alvaro Urien. "Fineco wanted to fill that gap and that is why we have launched this fund which offers a good return in real terms as well as a hedge against future inflation spikes."
Fon Fineco Inflación FI will be available for subscription until 13 May.
This product is available in Recent Additions (Spain).