New Plan: Potential 7.3% annual growth even if the FTSE stays the same, and the opportunity to kick out from year 3…
Kick out investments offer the potential for investment level returns, even if the stock market stays the same in the coming years, whilst also combining some capital protection should the market fall.
The FTSE 100 Kick Out Plan from Causeway Securities has an 8 year term and offers the opportunity to kick out from year 3 onwards provided the value of the FTSE 100 Index on an annual observation date is at or above its value from the start of the plan. It offers a high growth rate of 7.3% return for each year invested, plus the return of your original capital. Therefore if does kick out it the plan will return at least 21.9% at year 3, or 29.2% after 4 years, 36.5% after 5 years, and so on.
Should the FTSE be lower at the end of each year for the full 8 year term, no growth will be achieved, and your initial investment will be returned, unless the Index has fallen more than 35% below its level at the start of the plan. If it has, your initial capital is reduced by 1% for each 1% fall, so your capital is at risk.
The year 3 kick out feature is a welcome addition to the range of kick out plans currently on offer, whilst the 7.3% headline annual return is very competitive.
Potential Return: 7.3% for each year invested (not compounded), if the FTSE rises by any amount
Potential to mature early (kick out) each year from year 3 onwards
Capital At Risk Product – 65% barrier
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 8 Years
Arrangement fee applies
Minimum single investment: £10,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 17 September 2021
Direct & ISA Applications: 1 October 2021
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.
Important Information: This is a structured investment plan which 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 underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.