The December issue of the Mariana 10:10 plan is now available for investment. As usual this is a limited tranche which Strikes on the 20th December. In view of the timing of the Strike date we expect it to attract a lot of early interest. This likely demand emphasises the need to place Investments at the earliest opportunity so that investments can be secured as early closure due to meeting capacity could arise.
Please find attached & below details of this tranche which is again underwritten with Goldman Sachs (S&P A+ Stable) as the chosen Counterparty.
Key Points to consider:
- The product continues to be available in three formats all of which are linked exclusively to the FTSE 100 Index.
- All options provide the opportunity to achieve attractive returns in a controlled/pre-defined manner held as part of a diversified & well-balanced portfolio in uncertain & flat market conditions. If you assume a start level of the FTSE 100 at Strike similar to where the market is currently (7200), then with Option 3 the contract terms provide for returns of 12.75% p.a. with the need only for the Index at the second or any future anniversary to be at 7560 or above for this to happen. When the Plan Kicks Out/Autocalls all returns are, of course, accompanied by the full return of the original Invested Capital.
- The Plan Strike date for all Options is on the 20th December. The deadline for ISA Transfers is 27th November 2019 (applications need to be received at this office by 25th November).
- Remember that the longer the Plan runs in practice, the higher the equivalent Market would need to get in order for an investor’s main portfolio to match the returns offered.
- The traditional Step-Down version of the FTSE 100 linked Plan – Option 1 enjoys the enviable track record of a ‘perfect’ back-test underpinning it. Quite simply from every possible start date since the inception of the FTSE 100 in January 1984 it would have always worked for investors.
- The Back-testing of structured products is a precise science – as the actual terms of the strategy, which are defined by contract, are used with the actual performance of the index. (these are not ‘hopes and aims’, as is the case with active fund management, or even passive, where tracking error, charges, etc., have a bearing: structured products are legal obligations on the issuer to deliver precisely what they have stated the contract terms to be).
- One of the key advantages of the 10:10 Plan continues to be that it has been designed to combine the benefits of short term annual kick-out potential, from the 2nd anniversary, with a longer investment term to maximise the annual opportunities for successful kick out and the scale of snowballing / accumulation of potential coupons before maturity.
All 3 Plan options for this tranche are underwritten with Goldman Sachs as the Issuer & Counterparty. Click the link in order to take you to the Plan Documents (Brochure, KIDS, Application Forms etc)
Headline contract terms are as follows:
Don’t Forget the Risks
As with all forms of investment there are risks involved. These 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.
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 (when combined with our smiley and helpful service) the Mariana 10:10 Plan and the 3 options are certainly worthy of consideration for inclusion within investment portfolios.
Simply get in touch if you wish to receive regulated advice in relation to the ‘suitability of the plans to meet your investment needs’.
Best Price FS Team