New Investment Income Plan – 5% pa Interest Even If FTSE 100 Falls Up To 25%

Written by Editorial Team
Last updated: 27th August 2020

“How does 5% interest each year even if the FTSE 100 Index falls 25% sound? Well that’s exactly what’s on offer from this first release from newly launched MB Structured Investments.

The UK Quarterly Contingent Income Plan offers a quarterly interest payment of 1.25%, provided the FTSE 100 Index has not fallen by more than 25% below its value at the start of the plan – that’s a potential 5% per year, even in a falling market. If the Index closes below this level, no interest is paid for the quarter.

The plan has a maximum term of 10 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 35% 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.

Whilst interest rates seem set to remain low, the ability to receive 5% per year, even if the market falls 25%, might be appealing to wide range of investors.”

Oliver Roylance-Smith, head of savings and investment

LIMITED OFFER: current issue ends 28th September 2020

UK Quarterly Contingent Income Plan

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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.