The opportunity for quarterly income
The Gilliat Enhanced Income Builder – August 2014 is a six year and six month structured income investment plan linked to the performance of the FTSE 100 Index (‘the Index’).
The FTSE 100 Index is measured at the start of the Plan, and then on a quarterly basis thereafter. On each Quarter End Date, if the closing level of the Index is at or above 80% of the Start Level a fixed income of 1.625% gross will be paid to you for the quarter. If the Index level is below 80% of the Start Level, no income will be paid for that quarter.
As long as the Index has not fallen by more than 35% at maturity from the Start Level, you will receive the full return of your original investment. Any breach in this 35% safety net has the benefit of only being measured at maturity and not throughout the investment term, by comparing the End Level to the Start Level. If therefore at the end of the plan, the Index is below this 35% safety net barrier, you will lose 1% of capital for every 1% the Index has fallen below the starting level. It should be noted that in this scenario at least 35% of your capital will be lost. As such, this investment is only appropriate for those investors willing to accept the risk that they may lose some or all of their capital.
The Plan is available for Stocks & Shares ISA, ISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
Potential maximum quarterly income: 1.625% (equivalent to 6.5% annually)
Capital at risk product*
- The counterparty for this plan is Commerzbank AG
- Investment term: 6 years and 6 months
- Arrangement fee applies
- Minimum single investment: £10,000
- Maximum ISA investment: £15,000
- Maximum New ISA investment, from 1st July: £15,000
- ISA transfers accepted
- No maximum non-ISA investment
Investment deadline for ISA transfers: 24 July 2014
Investment deadline for direct and ISA investment by cheque or bank transfer: 14 August 2014
* The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty, Commerzbank AG, to repay the monies.
Reduced arrangement fee
For investments of £100,000 or more into this plan, processed through Fair Investment Company Limited, your arrangement fee will be reduced to 2% of your total investment.