Forum on Financial Products

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8/9/2009 1:05 PM

A bank was offering this product to their high net value customers with the main sales points below:

Fixed income of +9.84% US$,+9.5% Stg or 9.08% Euro per annum for 3 yrs, regardless of stock performance
100% Capital Protection as long as none of the stocks has dropped more than -50% on maturity
Invests in 5 Blue Chip Energy stocks Royal Dutch Shell, Total SA, Exxon-Mobil, Chesapeake & Chevron
Income & Capital backed by a A- rated international bank
Choice of 3 currencies Stg, US$ & Euro
No Initial Charges, No Annual Mgt Charge ie 100% Allocation
Term 3 years

How should investors look at it?

CFA Society of the Philippines