Its UK Autocall 10 has a six-year term offering a maximum return of 60% (gross) on maturity. To achieve this, the FTSE 100 only needs to be at the same level, or higher, on its final valuation date (29 August 2018) as on its initial valuation date (29 August 2012).
If the FTSE 100 is below its opening level at maturity (5 September 2018) investors will get their capital returned in full unless the index has dropped by more than 40% in which case capital will be at risk.
The nature of the autocall is that the plan can pay out before the end of the six-year term. On the anniversary date from the end of year two to the end of year five, should the FTSE 100 match or exceed is opening level then a 10% (gross) payment will be paid out and the plan cancelled.
Until 29 August 2012, the product will only be available to clients of Jarvis Investment Management, an execution-only stockbroker at a fixed price of £1,000 per unit. From 30 August it will be listed on the London Stock Exchange and traded publicly in the normal way.