HSBC 373 FTSE Daily Range Accrual EIS (8.00%)
Factsheet - For Professional Investors and clients of private banks Only
Key Facts
  • Trade Date:Tuesday 7th February 2012
  • Term:6-year term with a potential 8.00% return per annum (simple).
  • Currency: GBP
  • Taxation:Returns should be taxed as Capital under current rules.
  • Eligibility: Direct Investments, ISA, SIPP, SSAS, most Trusts.
  • Strike level:5890.26(FTSE Close of Business on Trade Date)
  • Range:3534.16 to 8246.36 FTSE points
  • Maximum return: 48% (8.00% return per annum, simple)
  • Protection:Invested Capital is 100% protected unless the Index trades below 3534.16 observed at maturity (European).
  • Issuer / counterparty risk:HSBC (Moody’s: Aa2. S&P rating: AA-. Fitch: AA).
  • Wrapper:EIS
  • ISIN: GB00B7F4YW56

Structured InvestmentReturn
The return is the sum of two components:
i)Daily Accrued Return
The maximum return that can be generated over the 6 year period is 48%.
The proportion of the maximum return is equal to the proportion of days during the 6 year period that the FTSE trades within a pre-defined range. The range is between 3534.16 and 8246.36FTSE points.
Number of days within 3534.16 – 8246.36 / Total number of scheduled trading days in period / Daily accrued return
1500 / 1500 / 48%
1000 / 1500 / 32%
750 / 1500 / 24%
500 / 1500 / 16%
0 / 1500 / 0%
ii)Capital Return
The Capital Returnis 100% protected unless the Index trades below 3534.16 observed at maturity. In this case, 1% Capital Return is lost for every 1% the Index has fallen below strike level observed at maturity only. / FTSE 100 at maturity / Capital Return
125% / 100.00%
100% / 100.00%
75% / 100.00%
60% / 100.00%
59% / 59.00%

This vehicle offers:

  • A potential return of 6.20% over 6yr interest rates.
  • 8% (annualised) accrued every day that the FTSE closes within the pre-defined range of 3534.16 – 8246.36 FTSE points.
  • Capital protected provided the FTSE 100 is at or above 3534.16at maturity (European).
  • Counterparty risk to an AA- rated bank, (ranks alongside Senior Unsecured debt).

1 of 1