Marc Chamberlain, executive director of Morgan Stanley, said: “This is a ‘best of’ growth plan, providing exposure to UK large-cap stocks in a defined payoff environment. It uses hindsight to automatically select the best performers.
“Investors are getting exposure to the largest companies listed on the UK stock exchange, with the added benefit of some protection if markets fall.”
Called the Morgan Stanley UK Giants Selector Plan 2, it retrospectively selects the 11 top-performing stocks out of that basket of 20, and investors receive the average return on these as capital growth.
Investors will receive the full repayment of their invested capital at maturity, if the FTSE 100 index is at or above 50 per cent of its level when the plan starts. If the index is more than 50 per cent below the initial level at maturity, capital will be at risk and investors will lose 1 per cent of their initial investment for each 1 per cent the final level is below the initial level.
Key points
- the plan closes on 15 July
- the deadline for Isa transfers is 8 July
Ian Lowes, managing director of Newcastle-based Lowes Financial Management, said: “It is not an investment to replace all others or something that is right for everyone, but it is one we feel is worthy of consideration as part of a diversified investment portfolio.”
