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James Hay

Type: Capital protected plan.

Description: James Hay has launched a capital protected selected UK banking plan, which offers 100 per cent capital protection at maturity. Growth potential is linked to the performance of a basket of four of the UK’s leading banking stocks, with early maturity possibilities in years one to four with growth of 13 per cent, 26 per cent, 39 per cent and 52 per cent respectively, plus the original capital.

Conditions: In the first year, if all four shares are greater than the initial level, investors receive a 13 per cent return and the plan redeems. In the second year, if all four shares are greater than the initial level, investors receive a 26 per cent return and the plan redeems. In the third year, if all four shares are greater than the initial level, investors receive a 39 per cent return and the plan redeems and in Year 4, if all four shares are greater than the initial level, investors receive a 52 per cent return and the plan redeems.

Contact: www.jameshay.co.uk

Verdict: The new structured product from James Hay is seeking to profit from the weakness of banking stocks at the moment. If you accept the shares prices have reached their natural low, then this product represents excellent value. A one-year return at 13 per cent, two year at 26 per cent, three years at 39 per cent and four years at 52 per cent, plus original capital. (4/5)