The product will provide exposure to the top ten companies as of 10 March 2011 – HSBC, Vodafone, BP, Royal Dutch Shell, GlaxoSmithKline, Rio Tinto, British American Tobacco, AstraZeneca, BHP Billiton and BG Group. The ten account for just over 45% of the FTSE 100 by index weighting.
The plan will make a payment equivalent to 16% of the investment on an annual basis if the closing share prices of at least eight of the ten shares are equal to or greater than their respective opening levels.
Investors will lose money on the six-year plan if three or more of the shares are more than 50% lower than their opening levels upon maturation on 28 April 2017. The fall in value will be equivalent to the fall in the share price of the third-worst performing share.
The plan offers annual kick out dates at the end of every April between its start date of 28 April 2011 and the 2017 maturity.
