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Key Dates |
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| Download SIPP/SSAS Application |
Plan Closes: 10 September 2010 |
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| Download Trustee Application |
Last ISA Transfers: 03 September 2010 |
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| Order literature by post | ||
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Plan
Details
This Plan is designed for investors who have a neutral or slightly positive view on UK equity markets over the next six years, but may not have a firm view on timing. It offers the potential for an attractive fixed return, plus the chance to exit early where the FTSE TM 100 Index has positive performance, however small, on any of the annual anniversaries of the Plan start date. Plan Summary Regular opportunities to lock in returns: At the end of each year, the level of the FTSE 100 Index is recorded. If it is equal to or greater than the FTSE 100 Index level recorded at the start of the Plan, the Kick Out feature is activated and you will lock in capital protection and a fixed return (equal to 8.5% for each year the Plan has been live). No need to wait until maturity to receive locked in returns: If the Kick Out feature is activated, you do not need to wait until maturity to receive any locked in returns. You will be given the option to exit the Plan at that point and receive the fixed return plus the repayment of your initial investment in full. If you decide to remain in the Plan once the Kick Out feature is activated, you have no further exposure to the FTSE 100 Index and the Plan will not accrue any more returns. For example, if the Kick Out feature is first activated in year 2, you will lock in a return of 17% (equal to 2 times 8.5%) and you cannot lock in any more returns later on in the term. Some protection from a falling market: If the Kick Out feature is activated, your capital is protected. Even if it is not activated, this does not automatically result in a loss. As long as the FTSE 100 Index level always closes above 50% of its level on the start date of the Plan during the investment term, you will receive the return of your initial investment at maturity. However, if at any point during the six-year term the FTSE 100 Index closes at or below 50% of its initial level AND at maturity the FTSE 100 Index is below its initial level then, the amount of capital you will receive back at maturity is reduced by the amount the FTSE 100 Index has fallen. This Plan is not capital protected and you should be prepared to lose some or all of your initial investment. Reduced counterparty risk: Your Plan will invest in securities issued by a special purpose investment vehicle. This vehicle will use your investment proceeds to purchase UK Government bonds, which it will hold as collateral on your behalf to pay the advertised returns. In the event of the UK Government going bankrupt or otherwise failing to pay the amounts due under the terms of the government bonds, you may lose all or part of your initial investment. The UK Government has a credit rating of AAA from Standard & Poor's at the time of publication. For more information on the special purpose vehicle, please see 'What Investment Protection is Offered by the Plan?' on page 8 of the plan brochure. |
