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).
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