The potential for 6% gross annual growth and early maturity
The Start Point Dual Option Step Down Kick Out Plan September / October 2014 – Option 1 is a maximum six year and two week structured investment plan linked to the performance the FTSE 100 Index (‘the Index’). The objective of the Plan is to deliver attractive fixed returns with the potential for early maturity dependent on the performance of the Index, even in a slightly falling market.
The Plan has a 6 year term, but offers the opportunity to mature early after years 2, 3, 4 or 5. If on any annual Measurement Date the Required Reference Level of the FTSE 100 Index is met, the Plan will mature early returning your original capital plus 6% gross for each year the plan has been active (not compounded). The Required Reference Levels are 100% of the Start Value of the Index at the end of Year 2, 95% at the end of Year 3, 90% at the end of Year 4, 85% at the end of Year 5, and 80% at the end of year 6.
Example – if the conditions were met at the end of Year 4 (i.e. the closing value of the Index on the 5th November 2018 was at least 90% or higher than its starting value) the Plan would provide an interest payment of 24% as well as a return of your capital.
If the Required Reference Level is not met then the plan will continue until the following year. If conditions are not met on any of the Measurement Dates you will receive no growth returns and return of your capital may be at risk. Please note adjustment events may apply, see page 4 of the brochure for further details.
Capital may be at risk if the Plan fails to meet the Required Reference level on any of the Measurement Dates. In this case as long as the Index has not fallen by more than 50% from its Initial Index Level at any time during the term of the Plan, you will receive the full return of your capital. Capital will be lost if the Index has fallen by more than 50% at any time during the term of the Plan and the Final Index Level is lower than the last Reference Level of 80%. In this situation your capital will be reduced by the same percentage that the Final Index Level is below the Initial Index Level, and you may lose some or all of your original investment amount.
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 fixed payment of 6% 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 Stocks & Shares NISA investment - £15,000
- NISA transfers accepted
- No maximum total investment
- Also available to businesses, charities and trusts
Investment deadline for NISA transfers: 17 October 2014
Investment deadline for direct and NISA investment: 30 October 2014
*The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty (BNP Paribas) 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.