The opportunity for 6.75% annual returns, as long as the FTSE doesn't fall by 10% or more
For those who are not confident the FTSE will rise significantly, the potential for investment level returns even if the FTSE 100 Index falls up to 10% could be an appealing one, especially while the Index remains at historically high levels.
Investec’s FTSE 100 Defensive Kick Out will mature early or ‘kick out’ provided the level of the FTSE at the end of each year from year 3 onwards is above 90% of its value at the start of the plan. If it is, then you will receive 6.75% for each year invested (not compounded). If the Index has fallen by 10% or more, your investment continues.
If no return is paid, your initial investment is returned in full unless the Index has fallen by 50% or more at the end of the term. If it has, your capital will be reduced by 1% for each 1% fall and so you could lose some or all of your initial investment.
So whether you think the FTSE might fall slightly, stay the same or rise in the coming years but not significantly, a defensive investment could be a timely opportunity.
- Potential Return: 6.75% per annum in years 3, 4, 5 or 6
- Capital At Risk Product*
- Investment term - Up to 6 Years
- Arrangement fee applies
- Minimum single investment - £3,000
- Maximum ISA investment - £20,000
- ISA transfers accepted
- Maximum investment - £1,000,000
- 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.
- Investment deadline ISA transfers: 23 February 2018
- Investment deadline for direct and ISA applications: 16 March 2018
*The return of your initial investment depends on the performance of the FTSE 100 Index and the ability of the counterparty (Investec Bank Plc) to repay your money.
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.