The opportunity for 6% pa even if the FTSE falls by up to 35%
If you are about to make an investment in the UK, asking yourself where the FTSE 100 Index might be in the next 5 or 6 years is a fair question to consider, especially as recently the Index closed at its highest level ever. Depending on your answer, this latest launch by Investec may be worth a closer look.
The FTSE 100 Defensive Step Down Kick Out Plan will ‘kick out’ and return your original investment along with 6% for each year invested (not compounded) provided the level of the FTSE 100 Index is above the required level at the end of each year. The required level is 100% of its starting value at the end of year 2, then reducing each year down to 65% in the final year.
If the FTSE is below the required level each year, no growth return will be achieved at the end of the plan and your original capital will be returned, unless the FTSE 100 Index has fallen by more than 40% at the end of your investment. If it has, your initial capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
The longer running FTSE 100 Step Down Kick Out Plan from Investec has been our best selling defensive investment over the last 12 months, and so we expect this more defensive version to be just as popular.
- Potential Return: 6% per annum in years 2, 3, 4, 5 or 6
- Alternative collateralised option also available featuring additional protection, returning a potential 5% pa**
- 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.
**An alternative collateralised option is also available paying a slightly lower potential return of 5% which has an additional protection feature designed to reduce the risk of potential loss to your investment in the event that Investec Bank plc, as counterparty to the Plan, fails or becomes bankrupt. The risk to your investment will instead be dependent on either the solvency of four UK financial institutions: Aviva plc, Barclays Bank plc, HSBC Bank plc and Lloyds Bank plc. Please see the factsheets and brochure for details
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.