BNP Paribas launches autocallable fund in France

BNP Paribas has launched a new collective investment fund which has the potential to kick out after two years with a 14% coupon. The capital-guaranteed fund Flamenco FCP (fonds commun de placement) is linked to the performance of the DJ Eurostoxx 50. At the end of each quarter, the index’s performance is compared to its rate at strike (December 2 2008). The better of the two performances is taken, and at maturity the 16 quarterly figures are used to calculate the index’s average performance.

The payoff at the fund’s four year maturity is equal to 100% participation in this performance. At the end of the second year, if the index average of the first eight quarters is at or above 6%, then the fund matures and the investor receives a fixed coupon of 14%.

Subscription to the fund is open until November 28, or until November 21 in a life insurance wrapper. The bank is also selling Flamenco PEA (plan d’epargnes en actions), which wraps the fund in a tax-efficient personal equity savings