New Plan: Potential 8.25% return after just 12 months…
If you could achieve 8.25% growth plus a full return of capital in just 12 months, would that be a compelling investment proposition? Well that’s exactly what’s on offer from this new plan from Walker Crips.
The UK & US Kick Out Plan offers 8.25% for each year invested (not compounded), provided the value of the the FTSE 100 Index and the S&P 500 Index (made up of the largest 500 companies listed on the stock exchanges in the USA) at the end of each year from year 1 onwards, are both higher than their value at the start of the plan. For example, if this happens at the end of year 1, you would receive 8.25% growth, 16.5% at the end of year 2, 24.75% at the end of year 3, and so on. You would also receive a full return of your original investment.
If one or both Indices close below this level, no growth return will be paid and your initial investment will be returned in full at the end of the term unless one or both Indices has fallen by more than 40%, measured at the end of the plan. If this does happen, your initial capital would be reduced by 1% for each 1% fall of the worst performing Index, so you could lose some or all of your investment.
So depending on your view of the UK ad US markets in the coming years, the potential for double digit growth returns even if the markets stay flat could be worth a closer look.
Potential Return: 8.25% per annum in years 1, 2, 3, 4, 5 or 6
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
Stocks & Shares ISA Transfer Applications: 29 January 2021
Cash ISA Transfer Applications: 5 February 2021
Direct & ISA Applications: 19 February 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.