Morgan Stanley offers accelerated returns

Delivering on declines

Morgan Stanley has issued a six-month product linked to declines in the US small-cap Russell 2000 Index. The product offers a 200% participation rate with a cap at 10% plus return of principal provided the index does not rise by more than 10% from its initial strike level.

Potential returns are capped at 10%, so index-linked returns are limited to 5% of any Russell 2000 decline. The maximum return available to investors is therefore 110% including principal, which is equivalent to 10.04% compoun