Equity-linked securities with a guaranteed return are desirable instruments in a volatile market environment. In this paper, we consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is bounded below by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. Here we present a new method for valuing the embedded Asian option. The method provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear, based on numerical testing against a Monte Carlo benchmark, to be accurate over a wide range of underlying security parameter values. Finally, we apply our method to value the embedded European style put option arising from a type of segregated fund with a maturity guarantee.