Experienced investors – our latest selections…
Here at Fair Investment Company there are a large number of our investors who decide to invest through us again and again. Some of our reviews tell us that this has something to do with our excellent 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 another look at what is driving more and more new and existing investors to these innovative investment ideas as well as give you some of our current income and growth selections.
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. Initially inspired by a 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.
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 a more predetermined level of risk versus reward than the better known investment fund. The return on offer is usually dependent on the performance of the stock market with the majority of plans 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.
A wider range of investment selections
Designed to complement our broader range of savings and investment ideas, our experienced investor 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.
This is where the experienced investor section offers additional investment opportunities, available to both new and existing customers. Listed here is our selection of plans whose performance will depend on a wider range of underlying investments, be this the FTSE 100 Index or indices from the US or Europe, a blend of more than one index or perhaps a specific number of stocks targeted at a benchmark or sector.
Who is an experienced investor?
As such the knowledge and experience required to review them as a potential investment opportunity is considered higher than for our other investment plans. Therefore these 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.
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.
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 closer look at some of our current selections.
Potential for 8.8% p.a. income, quarterly payments
The Focus Dual Index Quarterly Contingent Income Plan offers up to 8.8% each year based on the performance of the FTSE 100 Index and the EURO STOXX 50 Index, the 50 leading blue chip companies in the Eurozone. A 2.2% payment is made at the end of each quarter provided both indices close at or above 80% of their values at the start of the plan. If one or both Indices are below 80%, no income will be paid for that quarter.
The plan also offers some capital protection against falling stock market since your initial investment is returned in full unless one or both indices falls by more than 40%, 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 Eurozone markets will fall by more than 20% over the medium term, this plan could be a timely opportunity, whilst the quarterly payment frequency is likely to appeal to most income seekers. The plan also has the opportunity to mature early each quarter from year onwards in which case investors will receive their original capital back along with a final income payment.” Click here for more information »
Potential 15% return after just 12 months
The Dual Index Kick Start Plan from Meteor is a fixed term investment that will mature early or ‘kick out’, 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 15% at the end of year one, or 15% plus an additional 10% for each year thereafter.
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 14% 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 flat, could be worth a closer look.” Click here for more information »
Potential 11% annual returns
The Investec Dual Index Step Down Kick Out Plan offers 11.0% for each year invested (not compounded) provided the value of the FTSE 100 Index and the Euro STOXX 50 Index (made up of the 50 leading blue chip companies in the Eurozone) are at or above a specific level at the end of each year, compared to their values at the start of the plan. The required levels are 100% at the end of year two, reducing by 5% each year thereafter down to 80% in the final year.
If either or both Indices close at or 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 falls by more than 50% during the plan. If this occurs and one or both Indices are lower than 80% of their starting values at the end of the plan, 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: “The potential for double digit returns even if the markets go down by up to 20% could be a compelling investment proposition in the current investment climate and this plan is proving popular with our existing investors. So depending on your view of the UK and European markets, this plan could offer a compelling combination of high growth potential, the ability to mature early along with some capital protection should markets fall.” Click here for more information »
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 hope you find the experienced investor section helpful and easy to use – please do let us know what you think or if you have any questions: email us at [email protected] or call us on 0845 308 2525.
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.
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 individual shares, the FTSE 100 Index and the EURO STOXX 50 Index is not a guide to their future performance.