The opportunity for up to 6.75% annual income
The Morgan Stanley FTSE Income Accumulator Plan 7 is a six year structured income investment plan linked to the performance of the FTSE 100 Index (‘the Index’).
The Plan aims to provide a maximum potential quarterly income payment of 1.6875%, equivalent to 6.75% per year. The amount of income paid is determined by reference to the Weekly Observation Date which is measured every Friday during the term of the Plan. For each Weekly Observation Date where the closing value of the FTSE 100 Index is between 5,000 and 8,000 points income will accrue, and for each Weekly Observation Date the Index finishes outside of this range income will not accrue.
Income payments will be calculated and paid at the end of each quarter, the total income payment being proportionate to the number of Weekly Observation Dates the Index was between the 5,000 to 8,000 range. For example for a quarter consisting of 13 weeks, should the Index finish between the range on 11 of 13 Weekly Observation Dates, the quarterly income payment would be 1.4279% (1.6875% ÷ 13, x 11).
Repayment of your initial capital at the end of the term is subject to the performance of the Index. The Plan benefits from a built in safety net feature, which means as long as the End Value is not below 4,000 points, you will receive the full return of your original investment. Capital will be at risk however, if the End Value is less than 4,000 points, in which case your capital would be reduced by the same percentage that the End Value is below the Start Value. As such, this investment is only appropriate for investors willing to accept the risk that they may lose some or all of their capital.
The Plan is available for Stocks & Shares NISA, NISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
- Potential maximum quarterly income: 1.6875% (equivalent to 6.75% annually)
- Capital at risk product*
- Investment term: 6 Years
- Arrangement fee applies
- Minimum single investment: £3,000
- Maximum NISA investment: £15,000
- No maximum NISA transfer
- No maximum total investment
- Also available to businesses, charities and SIPPs
- Investment deadline NISA transfers: The deadline for this plan has now passed. Please fill in the form to receive details of the next plan as soon as they become available
- Investment deadline for direct and NISA investment: The deadline for this plan has now passed. Please fill in the form to receive details of the next plan as soon as they become available
* The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty (Morgan Stanley) 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.