Mariana have launched a new FTSE Defensive Income Kick-Out Plan – July 2019.
The Mariana FTSE Defensive Income Kick Out Plan – July 2019 is a ten-year plan based on the performance of the FTSE™ 100 Index, being the underlying index. The plan is constructed to offer a potential income of 1.575% per quarter providing the closing price of the underlying index is at or above 75% of the start level on a quarterly observation date. If the closing price of the underlying index is below 75% of the start level on a quarterly observation date, no income is paid for that quarter and the income for that period is permanently lost.
The plan has the possibility to kick out from the end of year 2 and quarterly thereafter. Should the closing price of the underlying index be at or above 105% of the start level on any one of the kick-out observation dates, the plan will mature early paying the potential income for that quarter and returning initial capital in full (subject to counterparty risk).
If the plan has not already kicked out, initial capital will be returned in full at the end of the plan’s term if on the maturity date (19 July 2029) the finish level of the underlying index is not more than 35% below the start level.
An investor is at risk of losing capital if the closing price of the underlying index is less than 65% of the start level (representing a decline of more than 35% from the start level), Initial capital will be lost at a rate of 1% for every 1% that the closing price of the underlying index is below the start level.
The counterparty chosen for this plan is Morgan Stanley & Co. International plc. Morgan Stanley & Co. International plc and its subsidiary undertakings are part of a group whose principal activity is the provision of financial services to corporations, governments and financial institutions. Morgan Stanley & Co. International plc is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the PRA and the United Kingdom Financial Conduct Authority.
An investor may lose part and up to all their investment if Morgan Stanley & Co. International plc goes into liquidation and defaults on paying the plan return and the repayment of an investor’s initial capital. The risk that Morgan Stanley & Co. International plc goes into liquidation is called Counterparty Risk. Securities issued by Morgan Stanley & Co. International plc. and Morgan Stanley are not covered by the Financial Services Compensation Scheme (FSCS). Therefore, if the Issuer and/or the Guarantor become insolvent an investor would not be covered by the FSCS. You can find more information regarding Morgan Stanley on their website www.morganstanley.com.
Investments should always be made considering risks, considering exposure to capital and making sure that concentration risk is managed. Balance when investing is vital.
The promotion and identification of a product’s features and benefits is not to be seen as ‘advice’. Providing financial advice requires a personal recommendation based upon understanding the full picture of an entity’s financial position. An investor must always read and fully understand the detail and risk relating to an investment plan prior to investing.
If you require financial advice in relation to the above product or any other products and consultancy services, simply get in touch, where we can develop a meaningful discussion around your needs.
Best PriceFS Team
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