The potential for 5% gross six monthly growth and early maturity
The Start Point Step Down Top 3 / FTSE 100 Kick Out Plan June / July 2014 is a maximum six year and two week structured investment plan linked to the performance of the 3 largest shares from FTSE 100 Index, EURO STOXX 50 Index and S&P 500 Index (‘the Indices’).
The Plan offers the opportunity for fixed returns linked to the performance of the 3 largest shares in the FTSE 100 Index, EURO STOXX 50 Index and S&P 500 Index (by Index weighting as at 20 May 2014): HSBC Holdings Plc, Total SA and Apple Inc respectively (‘the shares’).
The Plan has a 6 year term, but offers the opportunity to mature early after each six month period from 18 months onwards. If the levels of all 3 shares on the six month Measurement Date are at or above the Required Reference Level, the Plan will mature early returning your original capital plus 5% gross for each six month period the plan has been active (not compounded). The Required Reference Levels are 100% of the Opening Levels of all 3 shares at the first Measurement Date, gradually reducing down to 80% by the last Measurement Date. Please see page 1 of the brochure for full details.
If the Required Reference Level is not met then the plan will continue to the next six month Measurement Date. 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.
As long as the Index has not fallen by more than 40% at maturity from the Initial Index Level, you will receive the full return of your original investment. Any breach in this 40% safety net has the benefit of only being measured at maturity and not throughout the investment term, by comparing the Final Index Level to the Initial Index Level. If therefore at the end of the plan, the Index is below this 40% safety net barrier, you will lose 1% of capital for every 1% the Index has fallen below the starting level. It should be noted that in this scenario at least 40% of your capital will be lost. As such, this investment is only appropriate for those investors willing to accept the risk that they may lose some or all of their capital.
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.
Potential fixed payment of 5% gross for every six month period the Plan is active, equivalent to 10% pa
Capital at risk product*
- Investment term - Up to 6 Years
- Arrangement fee applies
- Minimum single investment - £5,000
- Maximum Stocks & Shares ISA investment - £11,880 (£15,000 from 1st July 2014)
- ISA transfers accepted
- No maximum total investment
- Also available to businesses, charities and trusts
Investment deadline for ISA transfers: 2 July 2014
Investment period for NISA investment by cheque or bank transfer: 1 - 14 July 2014
Investment deadline for direct & ISA investment by cheque or bank transfer: 14 July 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.