A 6 year investment with a 240% participation in the FTSE 100 or 8.5% annualized return, if called.

This product offers enhanced growth participation linked to the performance of the FTSE 100 at maturity if the issuing bank has not called the product early on any of the quarterly callable observation dates starting from 12 months. In our 25 years of experience, such a product has never been called away. 

If the issuer does opt to redeem the product early, the client will receive their capital back plus the relevant accumulated coupon rate for each quarter that has elapsed since strike date and the investment will end. For example, if the product is called by the issuer at 12 months and the coupon rate is 2.125% per quarter, the client will receive 100% capital back plus a 8.5% coupon.

If the product is not redeemed early then at the final observation date, if the underlying index is above its strike level, the client will receive 100% of their capital back plus the growth of the underlying from the initial strike level, multiplied by the participation rate (240%). For example, if the underlying is 20% above its strike level with a participation rate of 240% the investor will receive 100% capital back plus a 48% growth coupon.

If the underlying is below its strike level then 100% capital is returned.