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IDAD launch new plan – Morgan Stanley Capital Protected UK & Europe Kick Out Plan – December 2022
IDAD have launched a new plan – Morgan Stanley Capital Protected UK & Europe Kick Out Plan – December 2022.  Please find below a summary of the product, together with a link to obtain further details, along with the Brochure and Key Information Document.
IDAD Capital Protected
IDAD Morgan Stanley Capital Protected UK & Europe Kick Out Plan – December 2022Investment Term: A 6 year term.  However, the plan has the potential to mature early (Kick Out) from the first observation date at year 4 and annually thereafter.

Coupon Rate: 9.45% per annum

Issuer: Morgan Stanley & Co

How the Investment works   

This Plan provides investors with the opportunity to earn 9.45% p.a. if both the Underlying market Indices remains flat or falls slightly. If the closing level of both Underlying Indices on any observation date (set out below) before the Final Valuation Date is at least equal to or above the Kick Out Trigger Level, the Plan will kick out, i.e. mature early and make a gross investment return of 9.45% for each year that the Plan has been in force. The first observation date is the 21 December 2026, four years after the Plan Start Date.

If the Plan has not matured early, and the closing level of both the Underlying Indices on the Final Valuation Date (the ‘Final Levels’) are at least equal to or above the relevant Kick Out Trigger Level, the Plan will provide an investment return at the Maturity Date equal to 156.70% made up of 100% of your investment plus a 56.70% return, (6 X 9.45%) of the money you invested.

IDAD Capital Protected

Capital Protection Barrier 

The Product is 100% Capital Protected so full capital will be returned to investors at maturity irrespective of the performance of the Underlying Indices.

Investors will be exposed to the credit risk of the Issuer. If the Issuer becomes insolvent or cannot make the payments on the Product for any other reason, investors could lose some or all of their investment. A decline in the Issuers credit quality is likely to reduce the market value of the Product and therefore the price an investor may receive for the Product if they were to sell them in the market. This product is not FSCS protected.

About Morgan Stanley : Morgan Stanley, a bank holding company, provides diversified financial services on a worldwide basis. The Company operates a global securities business which serves individual and institutional investors and investment banking clients. Morgan Stanley also operates a global asset management business.

Source: Bloomberg 30.08.2022

Click here for more details of the IDAD Morgan Stanley Capital Protected UK & Europe Kick Out Plan – December 2022
Don’t Forget the Risks

As with all forms of investment there are risks involved. Some plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.  It is essential that investors read and understand the risks of the plan(s) which are clarified in the product documentation.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested.  Because of this, an investor is not certain to make a profit on an investment and may lose money.  Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquid or counterparty exposure.

At the Best Price FS price point the IDAD Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.