London-based Merchant Capital has launched a second tranche of its Kick Out Plan: Emerging Markets, which offers exposure to Brazil and China.

The product is a three year plan with a growth payment of 7 per cent semi-annually (14 per cent per annum) with the possibility of early maturity if the iShares MSCI Brazil Index Fund and the Hang Seng China Enterprises Index are both 5 per cent or more above their initial levels on any of the twice yearly kick out dates.

The return of capital at the end of the term depends on the performance of the two underlying indices and is not guaranteed. If either has decreased by more than 50 per cent from its initial level, measured on maturity only, investors will lose some or possibly all of their capital.

"We are offering a second tranche of this plan to accommodate strong demand from our clients," said John Gracey at Merchant.

"The demand for our products shows there is a place for an independent provider of competitive, innovative but straightforward structured products offering investors a real alternative to other offerings in the market."