Experienced Investor Section Proving Popular

Here at Fair Investment Company there are a large number of our investors who decide to invest through us again and again and hopefully this has something to do with our customer service and the quality and relevance of our wide range of savings and investment products. This is also why in late 2012 we launched our experienced investor section. Here we take a closer look at what is driving more and more new and existing investors to this growing selection of investment ideas.

Existing investors – the inspiration

As a company, we have always looked at ways of providing innovative savings and investment ideas, which has often led to offering alternative opportunities alongside more traditional ways to save and invest. And as we approach our 15 year anniversary of helping a wide range of customers, we have never been more committed to finding ways to improve our site and make it easier for you to find and compare the latest investment offers, whilst also giving you plenty of ideas and product selections to help you identify whether they meet your needs.

Inspired by a rapidly growing number of existing investors who were seeking new investment ideas, our experienced investor section is now in its third year and continues to enhance our overall offering by featuring a range of innovative investment products. With the potential for very high growth returns and double digit income, 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.

Fixed term investments

Many of our investors, both new and existing decide that an investment with a fixed term is the right way forward. This 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 an increased level of risk versus reward than better known investment fund. The return on offer is usually dependent on the performance of the stock market with the majority of plans available through Fair Investment being linked to an investment index such as the FTSE 100 Index, or a small number of listed shares, normally well known FTSE 100 shares. 

Experienced investor section

Our experienced investor section continues this popularity by offering additional fixed term investment opportunities, available to both new and existing customers. Listed here is our selection of plans whose performance will depend on other (non-FTSE) underlying indices, a blend of more than one index (normally the FTSE and one other) or perhaps a specific number of stocks targeted at a particular investment sector or benchmark.

As such the knowledge and experience required to consider them as a potential investment option, is considered higher than for our range of plans based on the FTSE 100 Index only or a basket of FTSE 100 listed shares.

Who is an experienced investor?

These investments might 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.

An experienced investor therefore, is simply someone who has sufficient investment knowledge and experience to be able to weigh up the risk and merits of the investment opportunities listed in order to establish that they are appropriate for them.

Investment knowledge and experience

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 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 appropriateness assessment 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 examples or similar, and we may need to obtain further details from you in order to confirm this.

Income and growth selections – soon to be featured

Where possible and depending on the overall returns on offer versus the level of risk, we try and feature both income and growth opportunities and although all of the plans featured are fixed term investments, some do have the ability to mature early or ‘kick-out’. Soon to be added are the following:

Mariana Income Kick Out – potential for 13% income per annum

This is a five year investment with income and return of capital based on the performance of five FTSE 100 listed shares, whose values are measured at the start of the plan. For each share that is at or above 90% of this starting value at the end of each quarter, a return of 0.65% is payable. Therefore, if all five shares are at or above 90%, the maximum quarterly payment of 3.25% is paid, equivalent to 13% each year. No income will be paid each quarter for any share below this level.

The plan also has the opportunity to kick out if all five shares are at or above their starting values at the end of each quarter, from year one onwards. If the plan does not kick out, your initial capital will be returned unless any of the shares have fallen by more than 50% at the end of the five year term. If they have, your capital is reduced by 1% for each 1% reduction of the worst performing share, so you could lose some or all of your initial investment. 

Cube Defensive UK Energy Basket Kick Out – potential 20% growth after 12 months

This is a three year plan based on the performance of BP PLC, Royal Dutch Shell PLC and BG Group but with the opportunity to kick out each quarter from the end of the first year onwards. If all three shares are at or above their starting at the end of year one, you will receive a return of your initial capital and a growth payment of 20%.

If any of the shares are below their starting level the plan continues, but the plan has the opportunity to kick out at the end of every quarter thereafter, with the potential growth payment increasing by 5% for each quarter, up to a maximum return of 60% at the end of the three year term. If the plan does not kick out, your capital is at risk if the value of any share is below 60% of its starting value. If one or more is below this 60% barrier, your initial capital is reduced by 1% for each 1% fall of the worst performing share, so you could lose some or all of your initial investment.

Both of the plans listed are eligible for new ISA investments, ISA transfers and non-ISA investments.

Maturing investments and new investment ideas

One of reasons for the growth of interest in this area is that many of our existing investors have taken our fixed term plans which have either come to the end of their term, or which have matured early or ‘kicked out’.  Therefore, this section is also aimed at those who have taken out investments with us over the years which have either recently matured, look likely to mature early or who are simply looking for a wider selection of ideas for further investment.

Making sure you are kept well informed of any potential maturity as well as offering the widest range of options at that time is an important part of our service to all customers and we feel this new section will really help our existing customers.

Growing number of investment opportunities

As stock markets around the globe continue to provide a mixture of highs and lows, this section has grown more and more popular since launch and we continue to work hard to expand the depth and range of opportunities that are listed. We do this by independently reviewing all of the savings and investment plans available in the market, as well as speaking to investment banks, plan managers and deposit takers directly with new ideas and opportunities on behalf of our investors.

If you would like to forward any product ideas or underlying investments you would like to see within an investment plan, please do let us know. Whether these are for income or growth, your feedback will be welcome.

Your feedback

We are also looking to start an existing investor/experienced investor email so look out for more information on this and sign up to our experienced investor email. We hope you find this section helpful and easy to use and please do let us know what you think or if you have any questions by emailing us at [email protected] or calling us on 0845 308 2525.

Keep visiting

Since the range of investment plans has increased, there are a regular flow of investment opportunities which we review and as such, 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. 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 FTSE 100 listed shares, the FTSE 100 Index, S&P 500 Index and the EURO STOXX 50 Index is not a guide to their future performance.


Written by Editorial Team ,
3rd February 2015