Super Defensive Plan: the opportunity for 4.5% pa even if the FTSE falls by up to 30%…
If you are considering investing, asking yourself where the FTSE 100 Index might be in the next 7 years is a fair question to consider, especially with recent stock market uncertainty. Depending on your answer, this plan may be worth a closer look.
The MB UK Super Defensive Kick Out Plan will ‘kick out’ and return your original investment along with 4.5% 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 105% of its starting value at the end of year 1, then reducing over the term of the plan down to 70% 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% at the end of your investment. If it has, your initial capital will be reduced by 1% for each 1% fall, so you could lose some or all of your initial investment.
The longer running UK Step Down Kick Out Plan from MB has been one of our best selling defensive investment over the last 12 months, and we expect to see this more even more defensive version just as popular.
Potential Return: 4.5% for each year invested (not compounded), if the FTSE is above required kick out level
Required kick out level reduces from 105% to 70% over the term
Potential to mature early (kick out) each year from year 1 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 7 Years
Arrangement fee applies
Minimum single investment: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 1 October 2021
Direct & ISA Applications: 15 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.