Income Plan Offer
Causeway Securities FTSE 100 Quarterly Income Plan
Up to 5% pa
- Income paid provided the FTSE 100 Index has not fallen by more than 20%
- Quarterly income (paid gross)
- Maximum 8 year term
- Early maturity potential from year 2
- Available for ISAs and ISA transfers
- Invest from £10,000
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Growth Investment Plan
IDAD UK Callable Supertraker Plan
New supertracker plan offering 5x any rise in the FTSE, or 10% per year growth if ended early…
“You know at the start of the plan that you will only lose money if the FTSE has fallen by more than 40% in six years’ time, and you also know that if the FTSE rises you will receive five times any growth, or alternatively a return equivalent to 10% pa”The IDAD UK Callable Supertracker Plan has a maximum six year term but the Issuer has the option of ‘calling’ (ending) the plan early on a quarterly observation date at any point during the term of the plan, from the end of year 2 onwards. If they decide to call the plan then you will receive a return equivalent to 2.5% x the number of quarters you have been invested for (equivalent to 10% per annum).
Oliver Roylance-Smith, head of savings and investment
If the Issuer does not decide to call the plan it will run for its full six year term. At this point you will receive a return equivalent to 5 x the Index growth over the term.
If you think the stock market is likely to go up in the coming years, this new plan from IDAD could offer a compelling balance of risk versus reward, since you know at the start that if the FTSE rises, you will receive 5 times any growth, or alternatively a return equivalent to 10% pa.
Available for ISA, ISA transfers and non-ISA investments
Capital is at risk. This is a structured investment plan that is not capital protected and is 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 due to the performance of the FTSE 100 Index.
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New to investing or don’t have time?
Ready Made Portfolios
If you are new to investing or simply don’t have the time to look after your investments then a ready made portfolio may be right for you.
Ready made investment portfolios allow you to leave the work of selecting investments to an expert.
A number of Investment platforms offer this service in which model portfolios are set up to suit a range of different investment goals and where you can decide based on your attitude to investment risk what is right for you.
5 Model Portfolios To Consider
Capital is at risk.
- Designed to help you realise your financial goals
- Portfolios include; Active growth, Active income, Low cost growth, Low cost income & an ethical portfolio option
- Fixed fee platform – £9.99 pm
Searching for income?
Investments that pay a monthly income
Looking for good investment options for generating income from capital.
As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out.
This means the income that is likely to be paid out by funds and investment trusts in the near future may be far less than the historic yield quoted in the portfolios.
We have put together some ideas for income investors that are worth a further look.
Defined risk with defined returns
Investment plans for uncertain times
Fixed term investment plans which provide exposure to the stock market but often with protection built in to mitigate market risk.
This balance can be attractive to investors particularly in uncertain markets.
Require capital protection?
If you could combine the potential to achieve investment level returns, with the same capital protection as any other bank deposit account, some might consider this the best of both the savings and investment worlds combined.
Anyone who has been saving for more than a few years, will no doubt agree that the future for savings rates is likely to offer at best a status quo of the current lows, as any sharp increase to interest rates seems unlikely in the short to medium term, and even less likely that any increase would be passed on to savers.
So whilst longer term fixed rate bonds offer well under 2.5% per year, where are the opportunities for Cash+ returns? Is there a middle ground for risk averse savers?
One option is the structured deposit.
What’s the best way to invest your money?
Do you want to build up a deposit for a house, or income for retirement?
Are you happy taking more risk for the chance of higher returns, or do you need to know your money’s secure? Read more:
What are structured deposit & investment plans?
The investment plans we feature can be classified under two categories – deposit plans and investment plans.
Deposit Plans or Structured Deposit Plans offer a return of initial capital and a potential return linked to the performance of an underlying asset such as the FTSE 100. These plans are cash based and should be seen as an alternative to cash deposits such as fixed rate bonds.
They are taxed in the same way as cash deposits ( returns are generally taxed as income in the hands of investors) and are attractive to risk averse investors as they are given the same protection falling under the Financial Services Compensation scheme (FSCS).
Investment plans or structured investment plans are designed to meet the requirements of different investors as either a complement or alternative to traditional direct equity or fund investment.
Plans are designed taking into account investment risk versus investment return, protection and timescales. Structured investment plans are typically equity linked and provide exposure to market risk but often with protection built in so restricting the upside but also mitigating the downside.
This balance of risk is attractive particularly in uncertain markets. Plans are backed by major financial institutions who provide the assets for the plan (known as the counterparty). Investment returns from investment plans often fall under CGT tax rules which can be attractive particularly to higher rate tax payers.
What are the benefits of structured deposit & investment plans?
Investors depending on their plans can also gain access to a range of alternative asset classes including world major equity indices, commodities and currencies. Most of the investment plans featured on this site are equity linked and offer different levels of capital risk and market exposure.
Capital at risk plans often offer features to reduce risk exposure to market falls by the use of a barrier. Typically the barrier will be set at 35% of the initial level of the underlying asset.
The two main types of barrier are the final day barrier (European barrier) where the underlying asset is only observed on the final day of the investment. Variations of the European barrier may include plans where the barrier is based on the value of the underlying asset based on average e.g. an average of the underlying asset over the last 3 months of the plan. This averaging again is a risk control reducing the impact of any sudden falls in the last stages of an investment term, although conversely it can also restrict growth potential in a rising market.
The second type of barrier often used is the closing/intra day barrier (American barrier) where the value of the underlying asset is observed throughout the life of the investment plan on a daily basis. In the event of a breach of the barrier the capital invested will be at risk in some way depending on the plan terms.
With investment plans an individual savings account (ISA) can be used as a wrapper to provide investors with tax efficient returns. For 2021/22 the HMRC set ISA allowance is £20,000 per individual, which can be used in full in either a deposit plan or an investment plan, or split between the two.
Investment ideas for income & growth
For investors seeking growth investment opportunities on this site we feature a range of different plans that have different features.
The investment plans we promote may include kick out investment plans which offer investors a pre-determined rate of return based on the performance of the underlying asset performing sufficiently well at a given series of dates.
Accelerated Growth Plans which offer investors the potential of leveraged exposure to the upside performance of an underlying asset. Digital plans that offer a fixed investment returns providing the plans requirements are met. Typically these plans will either return the original capital and the payoff or just the original capital.
For investors requiring income we regularly offer a range of income investment plan options. For investors who require capital protection deposit based plans can provide an attractive alternative to fixed rate bonds although income payments will be linked to the performance of an underlying asset so are usually not guaranteed. For investors who are comfortable with capital risk, reverse convertible or income plans provide a fixed income on a monthly, quarterly or annual basis. With these plans income payments are fixed and capital will be returned as long as the underlying asset does not fall below the set barrier.
Using your ISA allowances should be your first port of call when investing to mitigate any tax resulting from income or capital gains. With an investment ISA you can invest up to £20,000 per individual. Most investment plans and investment funds can be placed in an ISA, although always check the terms and conditions.
Other savings & investment opportunities
High Interest Savings Accounts
If you need short term access to your money, high interest savings accounts provide a way for savers to get a better rate of interest with capital security. Notice savings accounts which require savers to provide notice before withdrawing savings of anything up to 180 days often pay better interest than easy or instant access savings accounts.
If you looking to save tax efficiently for the 2021/22 tax year you can put up to £20,000 per individual into a cash ISA and shelter any interest from the taxman.
Fixed Rate Bonds
If you are happy locking up capital for a set period of anything from 6 months to 5 years a fixed rate bond will generally provide higher interest rate returns than instant access savings accounts. Fixed rate bonds are a low risk investment as your original capital will be returned at maturity.
For investors looking to invest in funds we offer a fund supermarket service which allows you to select your own income or growth funds at low cost. With over 1500 funds to choose from including many of the top investment performing funds with most available at no initial charge and many with discounted annual charges you can choose from some of the best investment funds available in the UK, including funds that have a low risk investment profile to funds that provide the potential of higher returns but also with a higher risk to capital.
Our Fund Supermarket service provides you with online access to your investment accounts 24/7 so you can monitor fund performance.