New Plan: Get 5.6% interest each year, quarterly payments even in a falling market…
The defensive feature of this new income plan means that even if the FTSE 100 Index and the S&P 500 Index (made up of the 500 largest companies listed on the US stock exchange) have fallen up to 20% at the end of each quarter, you still receive an interest payment.
The Walker Crips UK & US Conditional Income Kick Out Plan offers a quarterly interest payment of 1.40%, provided both Indices have not fallen by more than 20% below their value at the start of the plan – that’s a potential 5.6% per year, even in a falling market. If one or both Indices close below this level, no interest is paid for that quarter.
The plan has a maximum term of 6 years, but also offers the opportunity to receive your initial capital back in full before then, if at the end of each year (from year 2 onwards), both Indices have risen by any amount from their levels at the start of the plan. If it does not end early, your initial capital is returned in full provided that one or both Indices have not fallen by more than 35% at the end of the plan term. In this situation, your initial investment will be reduced by 1% for each 1% fall of the worst performing Index, so your capital at risk.
By combining some capital protection with a competitive rate of interest even if the Indices fall, this plan offers a compelling balance of risk versus reward.
Potential quarterly income: 1.40% (equivalent to 5.6% annually) if the FTSE 100 Index and S&P 500 Index don’t fall by more than 20%
Potential to mature early annually from year 2 onwards if the level of both Indices rise by any amount
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 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: 29 October 2021
Direct & ISA Applications: 12 November 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.