New defensive plan: Potential 5.25% annual growth and opportunity to kick out every 6 months, even if the FTSE falls by up to 15%…
Defensive investments normally offer the potential for growth even if the FTSE goes down slightly, and most of the defensive kick out investments currently available offer the opportunity to end early every 12 months.
However, this new plan from Walker Crips will ‘kick out’ and return your initial capital plus 2.625% for each six month period invested, from the end of year 2 onwards, provided the value of the FTSE 100 Index is at or above a required reference level. The required level is 100% of its starting value at the end of year 2 to 4.5, 95% at year 5 and 5.5, 90% at year 6 and 6.5 and 85% at the end of year 7. So the plan could offer the equivalent of 5.25% returns, even if the FTSE falls up to 15% over the term.
If the FTSE is lower than the required reference level at the end of each six month period, no growth is achieved. At the end of the plan term your initial capital is returned unless the Index has fallen by more than 35% from its initial level. If it has, your initial capital is reduced by 1% for each 1% fall, so your capital is at risk.
By combining investment returns even if the market falls over time, along with the six month potential early maturity frequency, this step down plan could be popular with both new and existing investors.
Potential Return: 2.625% per six month period invested, equivalent to 5.25% per annum
Opportunity to mature early every six months 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 7 Years
Arrangement fee applies
Minimum single investment: £10,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
Stocks & Shares ISA Transfer Applications: 23 July 2021
Cash ISA Transfer Applications: 30 July 2021
Direct & ISA Applications: 13 August 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.