4-Year Principal Protected Certificate China
Another variation on capital - protected schemes: 5 Year Diversified Fund
Advantages:
- The product is easy to understand
- No principal risk: 100% principal protection at maturity
- High participation rate: 100% participation on the sum of monthly performances
- Profit lock-in: the return is locked-in every 8% to protect against adverse market movement
- The Hang Seng China Enterprises Index offers access to both emerging and developed China
- The Hang Seng China Enterprises Index is a freefloat capitalization-weighted index comprised of the 43 largest companies incorporated in mainland China and listed on the Hong Kong Stock Exchange.
Daily Liquidity
Summary
- On maturity, investors receive 100% of Principal PLUS 100% participation on the sum of 48 monthly performances
- Profit lock-in: the return is locked-in every 8% (so 8%, 16%, 24%...) to protect against adverse market movement. What this means is that if you invest at a point in time and the markets go up 8% from your initial investment, the profit is locked in, giving you essentially in excess of 100% capital protection on your investment.
- Up to June 2009 the fund had seen in excess of 8% growth already.
- Each monthly performance is capped at 4%, making a maximum return over the 48 months of 192%
Fund Data
Currency
Underlying
Protection
Participation
Initial Level
Launch Date
Initial Fixing Date
Payment Date
Final Fixing Date
Maturity Date
Sterling (GBP)
Hang Seng China Enterprises Index (Bloomberg: HSCEI)
100% Principal Protection
100% Participation (on the sum of monthly performances)
Official closing level of the underlying on Initial Fixing Date
27 March 2009
24 April 2009
24 April 2009
23 April 2013
30 April 2013
Hang Seng Chinese Enterprises Index Progress Chart To August 2009
