The objective of the Japanese Accelerated Performance Fund ("the Fund") is to provide investors with a geared exposure to rises in the Nikkei 225 Index ("the Index"), coupled with a high degree of capital protection.
The Fund has a 6 year life and provides 5 times the capital return of the Index up to a maximum growth of 100% over its duration. The starting level of this Index when the fund was launched was 10092.64. If the Index rises to 12111.17, a rise of 20%, by December 2009, the shares will return growth of 100%.
The Fund provides investors with full capital protection providing the Index has not closed during the period down more than 50%, (a level of 5046.32).
If the Index does fall by more than 50% and finishes at the end of the Fund's life below the start level (10092.64) the value of the Fund will also fall by an equivalent percentage amount. If the Index recovers to above its start level investors will still receive 5 times the growth in the Index to a maximum of 100%.