The Investec EVEN30 Index is an index of the 30 least volatile stocks from the FTSE 100. The EVEN30 has consistently outperformed the FTSE100.
This note has a level of gearing built in to the product. The positive return of the Investec EVEN30 Index is automatically multiplied by 225% (x 2.25) at the end of the term of the note. The growth is averaged over the final 6 months.
The protection on this note is not linked to the EVEN30 instead it is linked to the FTSE 100 with a barrier of 50%. We haven’t seen a note with a barrier this low in a while so it is a great opportunity. Usually these notes come with a barrier of around the 60%+. Loss of capital only occurs if the FTSE 100 has dropped by more than 50% from its initial level at maturity.
Backtesting since 1998 shows that the 50% European barrier on FTSE 100 would never have been breached.