5Y GBP 95% Principal Protected Diversified Certificate
ISIN: FR0010784355
Another variation on capital - protected schemes: 4 Year HSCEI - weighted fund with 100% capital protection
Advantages:
- The product is easy to understand
- 95% 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
- A diversified exposure to equities, real estate, and gold.
- The fund is an equally weighted basket composed of the FTSE 100 Index, iShares MSCI Emerging Markets Index, iShares Dow Jones U.S. Real Estate Index, and the Market Vectors Gold Miners ETF
Daily Liquidity
Summary
- On maturity, investors receive the maximum of between 95% of Principal and 100% of principal PLUS 100% participation on the sum of 60 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 60 months of 240%.
Fund Data
Currency
Underlying
Protection
Participation
Initial Level
Launch Date
Initial Fixing Date
Payment Date
Final Fixing Date
Maturity Date
Sterling (GBP)
Various, see "Advantages" above
95% Principal Protection
100% Participation (on the sum of monthly performances)
Official closing level of the underlying on Initial Fixing Date
15 July 2009
24 July 2009
24 July 2009
21 July 2014
28 July 2014
Fund Performance to July 2009
