Morgan Stanley Asia growth plan returns principal only

Indexes fail to recover in time to trigger kickout and additional returns


In January 2008, Morgan Stanley issued the first version of its Asia (ex-Japan) Protected Growth Plan, which was linked to the performance of an equally weighted basket containing the Hang Seng and MSCI Taiwan indexes. The product had a single autocall opportunity, which would have been triggered after three years if the basket had increased in value by more than 30%, at which point the product would have matured and paid a return of 130% of the initial investment. If the autocall conditions wer

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