Recent investment market volatility provides the potential for exceptional headline rate of return across the 3 options available to retail consumers.
The issue is written in conjunction with Goldman Sachs as the counter party (S&P A+stable) and strikes on the 23rd August.
This issue enables existing investors in previous issues the opportunity to expand their holdings in the plan whilst diversifying with a completely different bank, along with of course the attractive terms on offer.
Key Points to consider:
- The product continues to be available in three formats all of which are linked exclusively to the FTSE100 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. We always recommend that a portfolio is holistically diversified. If its assumed that a start level of the FTSE100 at Strike similar to where the market is currently (7500, at the time of writing), then Option 3 has a potential to achieve returns of 14.4%pa with the need only for the Index at the second or any future anniversary to be at 7875 or above for the contract terms to develop. Alternatively use or combine with the Defensive Option 1 where ultimately from the same starting point a return of 9% pa can be achieved with the Index reducing over time as low as 6188 for the Kick Out/Autocall to develop. 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 23rd August. The deadline for ISA Transfers is 31st
- Also worth remembering that the longer the Plan runs in practice, the higher the equivalent Market would need to become in order for an investors main portfolio to match the returns on offer within the plan.
- The traditional Step Down version of the FTSE100 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 FTSE100 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 & Counter party.
Headline details of the product options are as follows. (Refer to the Brochure for more information on the Plan and the KID document that is available to down load and read from the bestpricefs website)
The headline details (which are the potential for returns) in relation to the options are as follows:
The overall Product design coupled with both the impressive Back-testing record & the current market environment make this a compelling & powerful investment offering.
Don’t forget the risks. As always, please refer to our ”Don’t forget the risks section”.
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 the merits of the investment and how the plans potential meet with an entities needs.
As always, should you have any questions, simply get in touch.
Best PriceFS Team
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