New supertracker plan offering 4x any rise in the FTSE, or 10.2% per year growth if called early…
A ‘supertracker’ tracks the performance of the stock market (in this case using the FTSE 100 Index) between the start and end dates of the plan, and then multiplies any growth by a number known at the outset, in this case by four. Therefore, if the FTSE rises by 5%, you receive 20% growth, by 10% and you get 40%, by 15% and you get a 60% return, and so on, with no upper limit.
This plan also contains a feature which means it can be ended early each month, from the end of year 1 onwards. Should this happen, you will receive 0.85% for each month invested, along with a return of your initial capital.
If the plan is not called early, and the FTSE is lower at the end of the term, no growth is achieved. At that point your initial capital will be returned in full, unless the Index has fallen by more than 40%. If it has, your capital will be reduced by 1% for each 1% fall, so your capital is at risk.
If you think the stock market is likely to go up in the coming years, this new plan from IDAD could offer a compelling balance of risk versus reward, since you know at the start that if the FTSE rises, you will receive 4 times any growth, or alternatively a return equivalent to 10.2% pa.
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.
0.85% per month (10.2% pa) – if the Issuer ends the plan early
4 x FTSE 100 Index growth – if the plan runs for the full term
Issuer – BNP Paribas Issuance B.V.
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 6 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 July 2020
Direct & ISA Applications by cheque: 31 July 2020
Direct & ISA Applications by bank transfer: 7 August 2020
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.