Mariana 10:10 Plan – New Plan Terms launched
Option 1 – Headline potential return 8.20%
Option 2 – Headline potential return 10.94%
Option 3 – Headline potential return 13.47%
The August issue of the Mariana 10:10 plan closed only 2 weeks into the offer period due to exceptional levels of take up. The launch of the next tranche has now been brought forward and continues to offer exceptional value. The high demand though does emphasise the need to advise us of Investments at the earliest opportunity so that we can reserve them for you.
Please find attached & below details of the new October tranche which is again underwritten with Goldman Sachs (S&P A+ Stable) as the chosen Counterparty.
Strike date for this tranche is on the 4th of October.
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 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 (7600 at the time of writing), then with Option 3 you could achieve returns of 13.47% p.a. with the need only for the Index at the second or any future anniversary to be at 7980 or above for this to happen. Alternatively, use or combine with the Defensive Option 1 where ultimately from the same starting point a return of 8.2% p.a. could be achieved with the Index reducing over time as low as 6270 for the Kick Out/Autocall 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 4th October. The deadline for ISA Transfers is 11th September 2019.
- It is also worth remembering 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 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. (Please read the Brochure for full details by clicking on the following link – https://www.bestpricefs.co.uk/assets/plan/10-10-ftse-kick-out-plan.pdf).
Headline details of the product options are as follows. (Again, please refer to the Brochure for more information on the Plan).
Don’t Forget the Risks
As always, please refer to our “Don’t Forget the Risks” section – https://www.bestpricefs.co.uk/mariana-capital-structured-products/#risks
Obtaining advice requires the ‘know your customer’ journey to be followed, so should you be interested in this product and require advice, simply get in touch.
The promotion of this product doesn’t constitute a ”suitability recommendation” to a specific entity, as a ”suitability recommendation” is specific to the entity in question, following the gathering of financial data in respect of consideration of the merits of the investment and how the plan’s potential meets with an entity’s needs.
As always, should you have any questions, simply get in touch.
Best Price FS Team