6.25% annual growth even if the FTSE falls up to 20%...
If you are looking to take on some risk to your capital in the hunt for higher returns, the potential for high growth combined with a return of capital unless the stock market falls by 40% or more, could be a compelling option.
The Meteor FTSE Step Down Kick Out Plan will kick out and return your original capital along with 6.25% for each year invested (not compounded) provided the level of the FTSE 100 Index is at or above the required level at the end of each year. The required level is 105% of its starting value at the end of year one, 100% at the end of Year two, 95% at the end of year three, 90% at the end of year four, 85% at the end of year five and 80% at the end of year six. So the FTSE could fall up to 20% and you still receive a return.
If the plan does not achieve a return, your initial capital is returned in full unless the FTSE falls by 40% or more at the end of the plan term. If it does your initial capital is reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
Investment plans that offer the opportunity to kick out seem to remain popular in all markets, but defensive plans more so when the FTSE is at historically high levels. For those looking for investment level returns even if the market falls up to 20%, this is certainly worth a closer look.
- Potential fixed payment of 6.25% gross for every year the Plan is active
- Capital at risk product*
- Investment term - Up to 6 Years
- Arrangement fee applies
- Minimum single investment - £5,000
- Maximum 2017/18 ISA investment - £20,000
- ISA transfers accepted
- No maximum total investment
- 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 for ISA transfers: 27 February 2018
- Investment deadline for direct and ISA investment by cheque: 7 March 2018
- Investment deadline for direct and ISA investment by bank transfer: 13 March 2018
*The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty (Natixis) to repay the monies.
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.