Meteor launches Select 10 plan

Meteor Asset Management has launched its Select 10 plan, the returns of which are linked to ten of the top fifteen shares in the FTSE 100.

The six-year structured product is linked to HSBC, BP, Vodafone, Royal Dutch Shell - A, GlaxoSmithKline, Rio Tinto, BHP Billiton, British American Tobacco, BG Group and Astrazeneca.

It will mature and pay 19% at the first annual observation date if at least eight of the ten shares are equal to or greater than their opening levels.

In the event that maturity is not triggered in the first year, the plan will continue into year two where if the above criterion is matched on the second observation date it will pay 38%. Returns increase by 19% for each year the plan runs providing the above conditions are met.

Capital is at risk if the final level of three or more shares have fallen by 50% or greater from their opening level.

In this case the reduction in capital will equal the difference between the opening level and final level of the third worst performing share.

Merrill Lynch serves as the counterparty for the plan.

Meteor managing director Graham Devile says: "The UK market commentators are once again thinking along the lines of a double dip and therefore investing in FTSE 100 companies which tend to be more internationally based provides more stability.

"This plan offers the potential for positive returns in a fundamentally gloomy investment climate."

The plan is open for investment until 1 October 2010, set at a minimum of £10,000. It is available as ISA, SIPP and SSAS, with commission at 3%.