24 January 11
Merchant Capital Limited (“MCAP”) has launched a third tranche of the popular Merchant Capital Kick Out Plan: Emerging Markets (the “Plan”) offering investors exposure to the emerging markets, Brazil and China, plus the Asian trading centre, Singapore. The Plan is a five year plan and offers investors a potential growth payment of 12% annually with the possibility of an early maturity if all three markets underlying the Plan are at or above their initial levels on any of the annual observation dates.
The Plan’s key features are:
• A five year, two week term from the investment date.
• Linked to Brazil, (iShares MSCI Brazil Index Fund), China (Hang Seng China Enterprises Index) and Singapore (MSCI Singapore Free Index).
• On each anniversary of the Plan, if all three markets underlying the Plan are at or above their initial levels, the Plan offers a growth payment of 12% for each completed year from the start date to maturity, subject to counterparty risk.
• The return of your capital at the end of the term is dependent on the performance of the three markets underlying the Plan and is not guaranteed. If on maturity any of the three markets underlying the Plan has fallen by 50% or more from its initial level on maturity, investors will lose some or all of their capital. Measurement is only made on maturity.
• Available as a direct investment and for ISAs.
• Eligibility: for individuals, companies, pension funds, trusts and charities.
• Minimum investment is £5,000 up to a maximum of £2m.
• Securities are issued by Barclays Bank Plc rated ‘AA-’ by Standard & Poor’s as at 11/01/2011.
• This is a capital at risk product and an investor could lose some or all of their initial investment.
John Gracey at Merchant Capital commented,
“We are pleased to be offering a third tranche of our Emerging Markets Kick Out Plan. This reflects strong demand from our clients. The Plan offers investors the potential to make a substantial return from exposure to two of the most exciting and dynamic emerging markets combined with Singapore which is one of the most successful Asian tiger economies. Singapore adds a defensive element to the combination of Brazil and China and while it demonstrates lower volatility its most recent year on year GDP growth has nevertheless beaten that of both Brazil and China.
“Our new Plan offers investors a competitive potential growth payment of 12% per annum with the possibility of early maturity on each anniversary of the Plan. Investors will receive the full return of their capital so long as none of the three markets underlying the Plan is 50% or more below its initial level on maturity. This protection level is only measured on the Plan’s maturity date.
“We are pleased to see Merchant Capital taking up a position as a major independent structured product provider in the UK. The demand for our products shows there is a place for an independent provider of competitive, innovative but straightforward structured products offering investors a real alternative to other offerings in the market”
Key dates:
• Direct Investment Close: 25 February 2011
• Investment Date: 4 March 2011
• Initial Level: 4 March 2011
• Anniversary dates: 5 March 2012, 4 March 2013, 4 March 2014, 4 March 2015
• Final Level: 4 March 2016
• Maturity Date: 18 March 2016
IFA commission: 3% of the sum invested. Counterparty information, back-testing and suitability statement packs for interested IFAs are available on www.merchant-capital.com. Contact details below or refer to www.merchant-capital.com
ENDS
Merchant Capital Limited is authorised and regulated by the Financial Services Authority (firm no. 220131).
For further information please contact:
Merchant Capital
0207 332 2205
Sales Team
Notes to Editors – Merchant Capital Limited
MCAP offers a range of attractive and innovative structured products providing either income or capital growth both to individual investors and IFAs. The philosophy of the business is to have a range of products offering differing investment solutions available throughout the year. In addition, the company will undertake joint ventures with other financial organisations, as well as construct bespoke solutions for advisers to white label and for one off investment requirements.
The company offers underlying assets which are both mainstream, such as FTSETM100 based structures, as well as more innovative ones relating to commodities or emerging markets.