Société Générale has launched its first knockout of 2011, a new tranche of the bank's range of exchange-traded autocallables on the London Stock Exchange (LSE) based on the FTSE100, with a strike of 6,000.
The new Defensive Autocall 2 (SG12) is a five-year capital-at-risk growth structure. The product will mature early on any annual observation date on which the underlying index closes at or above its strike level paying 8% pa (simple) for each year of the term elapsed. Capital is at risk and will be eroded one to one with the underlying performance if the FTSE100 falls below 3,600.
According to SRP data, the French bank launched a range of eight autocall structures linked to the FTSE100 at the end of 2010 following the marketing of two knockout structures in 2008. The launch follows a surge of knockout maturities in the UK which in July saw returns as high as 15% (Walker Crips Dual Index Plan) after one year. Other knockout products maturing early in July include Meteor's Emerging Markets Kick-Out Plan 3 which returned 112%; Barclays Wealth's Protected FTSE Plan Nov Early Maturity which returned 112.5%; and Morgan Stanley's FTSE Bonus Growth Plan which returned 109.5%. There are currently 26 knockout structures open for subscription in the UK from 12 providers.
The minimum investment size for the Defensive Autocall 2 (SG12) is £100. Société Générale Option Europe will be providing a secondary market for investors during LSE trading hours through UK stockbrokers.
This product will appear shortly in Recent Additions (UK).