Investors now have the choice of either of Meteor AM’s FTSE 5 Quarterly Kick-Out Plan or its FTSE 100-based Top Ten Kick-Out Plan 7.
The former is linked to the performance of BHP Billiton, GlaxoSmithKline, HSBC, Royal Dutch Shell and Tesco.
Five stock choice
It has a five year and two week term and will pay out 5% at its first quarterly maturity date as long as each of the five shares is at least 95% of its opening level. If the maturity level is not triggered at this point it rolls into the next quarter when it the same criteria are met it will pay 10%.
The plan continues until all five shares are at or above 95% of their start level point at any quarterly maturity date when it could pay out an investment return of 100%.
It does not offer full protection as capital is at risk if, at maturity, the worst performing stock is more than 50% below its opening level. If this is the case, capital returns will be based on the share price of the worst performing stock.
The stock prices will be as at the close of business on 24 June, 2011, and the first quarterly measurement date will be 26th September. The final levels will be the close of business prices of the five stocks on 24 June, 2016, with a maturity date of 1 July 2016.
Ten stock choice
The FTSE 100-based Top Ten Kick-Out Plan 7 has a six year and two week term and is linked to the top tem shares, by index weighting, in the FTSE 100 on 5 May.
The shares are AstraZeneca, BG Group, BHP Billiton, BP, British American Tobacco, GlaxoSmithKline, HSBC, Rio Tinto, Shell and Vodafone.
It will pay 15.5% on its first annual measurement date as long as at least eight of the shares are equal to or greater than their opening levels.
If this is not triggered, the plan rolls into year two when it will pay out 31% on its next anniversary, 46.5% in year three, 62% in year four, 77.5% in year five and 93% at maturity in year six.
It does not offer full protection as capital is at risk if, at maturity, the final level off three or more of the shares are more than 50% below their opening levels. If this is the case, capital returns will be based on the price of the third worst performing stock.
The share prices will be as at 5 May with the first annual measurement date being 25 June, 2012. The final levels will be the close of business prices of the ten stocks on 26 June 2017, with a maturity date of 10 July, 2017.
The counterparties are Royal Bank of Scotland and BNP Paribas respectively and the deadline for applications for both plans is 22 June.
