Written by Oliver Roylance-Smith
10th November 2015

Experienced investor income and growth selections

At Fair Investment Company there are a large number of our investors who decide to invest through us again and again, which is one of the reasons why for the last three years, our experienced investor section has risen in popularity. Whether this is reinvesting investments that have matured, adding new money to their investment portfolio, or a combination of the two, this section has proved popular with both new and existing customers. For this reason we will be bringing you a regular article covering some of the most popular investments featured in the section. Today we start with one income and one growth selection.

A wider range of investment selections

Designed to complement our range of savings and investment ideas, our experienced investor section was created to enhance our overall offering by featuring a wider range of innovative investment products. Aimed at both existing investors and those new to Fair Investment, the section is aimed at making it easier for you to find and compare the latest income and growth investment opportunities, whilst also giving you plenty of investment ideas and product selections to help you identify whether they meet your needs.

Fixed term investments

Many of our investors decide that an investment with a fixed term is the right way forward, which is why our most popular type of investment is the structured investment plan. These plans offer a defined return for a defined level of risk, thereby offering a more predetermined level of risk versus reward than many other types of investment.

Investment selections

Listed in the experienced investor section is our selection of plans whose performance will depend on a wider range of underlying investments, be this indices from the US or Europe as well as the UK, a blend of more than one index or perhaps a specific number of stocks targeted at a benchmark or sector.

Risk versus reward

As such the knowledge and experience required to review their risk versus reward and their potential as an investment opportunity is considered higher than for some of our other investment plans. Therefore these would not be appropriate for someone new to this type of product or new to investing, but rather are designed for customers who have already invested in a similar product or who fully understand and have experience of putting their capital at risk.

Who is an experienced investor?

Since Fair Investment does not give advice, we feel there are certain investments which should only be considered if this knowledge and experience can be established and although there are no formal set criteria, the following are examples of someone who might be considered an experienced investor:

  1. An existing customer who has invested in a capital at risk product
  2. A new customer who has, in the last 5 years, held a capital at risk investment
  3. A new customer who has, in the last 5 years, held a structured product

Since an assessment of appropriateness forms part of our application process, all investors into any of the plans listed in this section will need to show that they have the necessary knowledge and experience by confirming they fit into one of the above or similar and we may need to obtain further details from you in order to confirm this.

Latest selections

With the potential for double digit growth returns and high income yields, this section is aimed at more experienced investors who are looking for a wider selection of top income and growth ideas and who are prepared to take a higher level of risk. Here we take a look at two of our current selections, one income and one growth.

Income selection

Mariana FTSE S&P Range Income Plan

The Mariana FSTE S&P Range Income Plan offers up to 7.50% each year based on the performance of the FTSE 100 Index and the S&P 500 Index (made up of 500 of the largest companies in the US). Each Index is measured at the start of the plan, and then again at the end of each quarter. If both Indices are within the range of 70% and 130% of their starting level (i.e. they can fall or rise by up to 30%), a 1.875% income payment is made. If either index is outside of this range, no payment is made for that quarter.

The plan also offers some capital protection against the UK and US markets falling since your initial investment is returned in full unless one or both indices falls by 40% or more, measured at the end of the fixed term only. If this does occur, your capital will be reduced by 1% for each 1% fall of the worst performing index, so you could lose some or all of your initial investment.

Fair Investment view: “If you are looking for a high level of income and do not think either the UK or US markets will rise or fall by more than 30% over the medium term, this plan could be a timely opportunity whilst the quarterly payment frequency is likely to appeal to most income seekers. There are few investments out there offering up to 7.50% income whilst the 40% barrier for both indices offers investors some capital protection against falling markets.”

Click here for more information »

 

Growth selection

Meteor Dual index Kick Start Plan

The Dual Index Kick Start Plan from Meteor is a fixed term investment that will mature early or ‘kick out’ at the end of each year, depending on the performance of the FTSE 100 Index and the EURO STOXX 50 Index (made up of the 50 leading blue chip companies in the Eurozone). If the values of both indices at the end of each year are at or above their values at the start of the plan, investors will receive 13.25% at the end of year one, or 13.25% plus an additional 10% for each year thereafter (not compounded).

If one or both Indices close below the required level each year, no growth return will be paid and your initial investment will be returned in full unless one or both Indices has fallen by more than 40% at the end of the plan. If it has, your initial capital would be reduced by 1% for each 1% fall of the worst performing Index, so you could lose some or all of your investment.

Fair Investment view: “Investors in search of the potential for high returns may find the opportunity for 13.25% growth after just 12 months along with a full return of capital, to be a compelling one. Depending on your view of the UK and European markets, an investment that offers the potential for such high growth returns even if the markets stay relatively flat, could be worth a closer look.”

Click here for more information »

 

Keep visiting for the latest plans

Changes to stock market conditions bring with them new investment trends and opportunities. Structured investment plans can often be well placed to capture some of these opportunities and so there are a regular flow of new investment ideas on offer and we make regularly changes to the investment plans listed in the section. These plans are normally only available for between four to six weeks and since they can be very popular, some do close early because they have been oversubscribed. Therefore keep visiting in order to seek out the latest offers.

Visit the Experienced Investor section »

 

No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment. If you are at all unsure of the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

The plans detailed in this article are structured investment plans that are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Growth on your investment is not guaranteed and there is a risk of losing some or all of your initial investment. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term. The past performance of the FTSE 100 Index, the EURO STOXX 50 Index and the S&P 500 are not a guide to their future performance.