Latest FTSE 100 Investment Income Plan: Super Defensive

Written by Editorial Team
Last updated: 20th August 2020

Potential 4.60% per year interest

Interest paid even if the stock market falls up to 25%…

“The term ‘super defensive’ is what we use to describe an investment that can still achieve its headline returns, even if the stock markets falls well under its value at the start of the plan.

This new investment plan from Walker Crips will pay 1.15% at the end of each quarter, provided the FTSE 100 Index has not fallen more than 25% below its value at the start of the plan – that’s a potential 4.60% per year interest, even if the FTSE falls 25%. If the Index does close below this level, no income is paid for that quarter.

The plan has a maximum term of 8 years, but also offers the opportunity to receive your initial capital back in full before then, if the FTSE has risen by more than 5% at the end of each year, from year 2 onwards. If the plan does not end early, your initial capital is returned in full provided the FTSE has not fallen by more than 40% at the end of the plan term. If it has, your initial investment will be reduced by 1% for each 1% fall, so your capital at risk.

The combination of quarterly interest even if the FTSE falls 25%, and capital protection unless the FTSE falls more than 40%, could make this one of the best all round plans on offer.”

Oliver Roylance-Smith, head of savings and investment

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LIMITED OFFER: current issue ends 4th September 2020

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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. Income payments are not guaranteed and there is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

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 is not a guide to its future performance.

Tax treatment of ISAs depends on your individual circumstances and legislation which are subject to change in the future. ISA transfer charges may apply, please check with your provider.

Fair Investment Company does not offer advice and any investment transacted through us is on a non-advised basis. If you are at all unsure of the suitability of this type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.