Defensive Investment Plans

Oliver Roylance-Smith, Director

Our view:

"For investors who are concerned with the markets being at historically high levels it is worth considering the merits of defensive investment plans, which are designed to produce investment level growth returns even if the underlying investment goes down. They offer a defined return for a defined level of risk, so you will know from the outset exactly what must happen in order to receive any growth and a return of your initial investment. Although each plan has its own characteristics, they are designed for investors who are not convinced the markets will continue to rise and so wish to have the potential for investment returns even if the market falls slightly."   Oliver Roylance-Smith, Head of Investments and Savings

Defensive Investment Plans - INCOME
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential IncomeMore Info
FTSE 100 Defensive Income PlanInvestec Bank Plcyes8 years

7.00%

per annum

More Info >
  • 7.00% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 20%
  • Alternative option paying up to 5.5% income if Index falls by up to 40%
  • Plan can mature early each year from year 2 onwards
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 23 February 2018
  • Investment deadline for direct and ISA applications - 16 March 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE Monthly Contingent Income PlanNatixisyesUp to 10 years

6.00%

per annum

More Info >
  • Up to 6% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 25%
  • Monthly payments
  • Plan can mature early each quarter from year 2 onwards
  • Alternative option available returning a potential 5.004% if the FTSE falls by up to 35%
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfers - 14 February 2018
  • Investment deadline for direct and ISA applications by cheque - 22 February 2018
  • Investment deadline for direct and ISA applications by bank transfer - 28 February 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% from its starting level at the end of the investment term, in which case your initial investment will reduce by 1% for each 1% fall below its starting value
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
  • May close early if oversubscribed
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.
Defensive Investment Plans - GROWTH
ProviderPlan NameCounterpartyISA OptionTermMaximum Potential ReturnMore Info
FTSE 100 Step Down Kick-Out PlanInvestec Bank plcyesUp to
6 years

7.00%

per annum

More Info >
  • 7% for each year (not compounded) provided the FTSE 100 finishes above kick out level
  • Kick out level reduces from 100% to to 80% over the term
  • Potential to mature early, from year 2 onwards
  • Alternative collateralised option also available paying a potential 5.5% pa
  • Available for ISA, ISA transfer and direct investment 
  • Investment deadline for ISA transfers - 23 February 2018
  • Investment deadline for direct and ISA applications - 16 March 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE 100 Defensive Kick-Out PlanInvestec Bank plcyesUp to
6 years

6.75%

per annum

More Info >
  • 6.75% for each year (not compounded) provided the FTSE 100 finishes above 90% of its starting value
  • Potential to mature early, from year 3 onwards
  • Available for ISA, ISA transfer and direct investment 
  • Investment deadline for ISA transfers - 23 February 2018
  • Investment deadline for direct and ISA applications - 16 March 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 50% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
FTSE Step Down Kick Out PlanNatixisyesUp to
6 years

6.25%

per annum

More Info >
  • Potential early maturity return of 6.25% x the number of years the plan has been active
  • Maximum 6 year structured investment plan
  • Potential for early maturity from year 1
  • Kick out level required reduces by 25% over term of plan
  • Available for ISA, ISA transfer and direct investment
  • Investment deadline for ISA transfer applications - 27 February 2018
  • Investment deadline for direct and ISA applications by cheque - 7 March 2018
  • Investment deadline for direct and ISA applications by bank transfer - 13 March 2018
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
  • May close early if oversubscribed
FTSE 100 Defensive Step Down Kick-Out PlanInvestec Bank plcyesUp to
6 years

6.00%

per annum

More Info >
  • 6% for each year (not compounded) provided the FTSE 100 finishes above kick out level
  • Kick out level reduces from 100% to to 65% over the term
  • Potential to mature early, from year 2 onwards
  • Alternative collateralised option also available paying a potential 5% pa
  • Available for ISA, ISA transfer and direct investment 
  • Investment deadline for ISA transfers - 23 February 2018
  • Investment deadline for direct and ISA applications - 16 March 2018
  • Capital is at risk if the FTSE 100 Index falls by more than 40% at maturity, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.