Société Générale has issued the first in its new range of listed structured products tradable on the London Stock Exchange.
The FTSE Income Protection 2000 will form part of The Income Protection Range which is designed to give investors greater liquidity and transparency by allowing them to access structured products via the exchange.
The exchange-traded format structured product is available through IFAs but also directly to private investors who can trade it via the London stock exchange like a share.
This makes the exchanged-traded proposition attractive to people using DIY-style investment schemes such as SIPPs, says the firm.
The FTSE Income Protection 2000 is designed for investors looking for regular and unconditional income and confident the FTSE 100 will not breach the 2,000 points threshold.
Investors receive an unconditional quarterly coupon of 2% over three years which equates to 8% p.a. The coupon is paid whether the barrier is breached or not.
At maturity, 100% of the initial value is repaid as long as the FTSE has not breached the barrier. If it has, product holders will receive the performance of the FTSE from an initial level of 4,000 and capital is therefore at risk.
Minimum trade size is 1% and the bid/ask spread is also 1%. A total of 12 coupons of £20 each are paid quarterly over three years. If barriers are not breached, investors can redeem £1,000 while if the barrier is breached they can redeem £1,000 multiplied by the final FTSE level divided by 4,000.
The final FTSE level is decided on its last trading date on 12 March 2012 when the product matures.
More information is available at: www.sglistedproducts.com.IFAonline
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