The Eurostoxx 50 Supertracker Plan, open from 25 April, is a tracker plan for investors seeking exposure to growth in the Euro Stoxx 50 Index.
The Eurostoxx 50 Supertracker Plan is designed to have an investment return at the maturity date equal to 10x the rise in the index, subject to a cap of 75%. This is based on the assumption that the final level of the index is above its opening level.
If however the final level of the index is equal to, or below its opening level the product will not provide any investment return. This means Meteor has classified the product as capital-at-risk, because investors will lose some or all their money if the final level of the index is less than 60% of its opening level.
“Having suffered steep losses during both the financial crisis of 2008/9 and the Eurozone crisis of 2012, many believe that the Euro Stoxx 50 presents investors with an attractive growth opportunity,” managing director Graham Devile commented.
“The Euro Stoxx 50 Supertracker April 2014 has been developed to enable investors to benefit from enhanced exposure to positive movements in the Euro Stoxx 50 whilst providing significant protection to capital,” he added.
Five Stock Monthly Income Plan
At the same time, Meteor Asset Management has also launched a share-linked fixed income product, which pays a fixed monthly income of 0.67%. The FTSE 5 Monthly Income Plan April 2014 will be available on 17 April.
Similar to the 'supertracker', this product also plays on expectations of positive index performance.
It is based on the performance of the following shares from the FTSE 100: Anglo American, BG Group, BAE Systems, Prudential and Vodafone.
The counterparty through which the securities will be issued is Goldman Sachs International, based in London.
“This product has been designed for investors who are unable to secure the level of income they require from traditional sources. The annual rate of over 8% is well above that available elsewhere and accordingly investors need to be aware of the increased risk to capital as a result, through the link to individual shares rather than indices,” Devile commented.
