High growth even if the FTSE stays the same and potential kick out from year 2…
Plans that only require the FTSE 100 Index to be at or above its level at the start of the plan in order to kick out, are popular with a wide range of investors since even if you think the FTSE might stay relatively flat in the coming years, you could still achieve investment level returns.
The FTSE 100 Kick Out Plan from Mariana will kick out each year from the end of year 2 onwards, provided the Index stays the same or rises by any amount. If it does, you will receive 9.1% for each year invested (not compounded), which equates to 18.2% at the end of year 2, 27.3% at the end of year 3, 36.4% at the end of year 4, and so on, up to a potential 72.8% in the plan’s final year. You would also receive a return of your original investment.
The plan also offers some capital protection, since if it runs the full 8 year term without kicking out, you still receive a return of your initial capital unless the FTSE has fallen by more than 35%, measured at the end of the plan only. If it has, your initial investment will be reduced by 1% for each 1% fall, therefore your capital is at risk.
The combination of high growth potential, the opportunity to kick out after 2 years, and the 35% barrier before your capital is at risk, could be compelling in the current climate.
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.
Potential Return: 9.1% for each year invested (not compounded), if the FTSE rises by any amount
Potential to mature early (kick out) each year from year 2 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: 24 May 2022
Direct & ISA Applications: 10 June 2022
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.