High Growth Defensive Plan: 8.5% per year, even if the FTSE falls by up to 15% over 5 years…
Where will the FTSE be in the medium term? It’s a fair question to ask and if you’re not convinced it will continue to rise, but consider 8.5% annual growth is a good return, the UK Defensive Step Down Plan Kick Out Plan from Causeway Securities may be worth a closer look.
The plan will ‘kick out’ and return your original investment along with 8.5% for each year invested (not compounded) provided the level of the FTSE 100 Index is above the required level at the end of each year. The required level is 100% of its starting value at the end of year 2, reducing by 5% each year thereafter, down to 85% in the final year.
If the FTSE is below the required level each year, no growth return will be achieved at the end of the plan and your original capital will be returned unless the FTSE 100 Index has fallen by more than 35% from the opening level. If it does, your initial capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
For investors who are not confident the stock market will continue to rise in the coming years, a plan that offers investment level returns even if the FTSE 100 falls by up to 15%, could be an attractive opportunity.
Potential Return: 8.5% for each year invested (not compounded), if the FTSE is above required kick out level
Required kick out level reduces from 100% to 85% over the term
Potential to mature early (kick out) each year from year 2 onwards
Capital At Risk Product
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 5 Years
Arrangement fee applies
Minimum single investment: £10,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
The deadline for this plan has now passed. Please fill in the form below to receive details of the next issue of the plan as soon as it becomes available
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.