High Income: Potential 4.5% interest pa even if the FTSE falls 20%, quarterly payments…
If you’re looking for high income investment opportunities, this latest plan from Causeway Securities offers up to 4.5% per year, with quarterly interest payments.
The plan is based on the performance of the FTSE 100 Index, and will pay 1.125% at the end of each quarter, provided the FTSE has fallen by more than 20% below its value at the start of the plan – that’s a potential 4.5% per year interest. If the FTSE is below this level, no income is paid for that quarter.
The plan has a maximum term of 7 years, but also offers the opportunity to receive your initial capital back in full before then if the FTSE has risen by 5% or more at the end of each quarter from year 2 onwards. If the plan does not end early, your initial capital is returned in full unless the FTSE has fallen by more than 35% at the end of the plan. If this does happen, your initial capital would be reduced by 1% for each 1% fall, so your capital is at risk.
Depending on your view of the UK market in the medium term, the combination of high income even if the FTSE falls 20%, along with some capital protection, could be worth a closer look.
Potential quarterly income: 1.125% (equivalent to 4.5% annually) if the FTSE 100 Index doesn’t fall by more than 20%
Potential to mature early quarterly from year 2 onwards if the FTSE 100 Index rises by 5% or more
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 7 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: 24 September 2021
Direct & ISA Applications: 8 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.