Lowes Structured Investment Centre has added a defensive option to the second tranche of its 10:10 Plan kick-out structured product.
Produced in conjunction with Newcastle-based Lowes Financial Management, the second issue will generate positive returns and trigger early maturity and kick-out even if the FTSE 100 is up to 10 per cent below its starting level throughout the maximum 10-year investment term.
Chris Taylor, head of strategic development of Lowes Structured Investment Centre, said: “The defensive option will generate positive returns even if the market falls by up to 10 per cent and brings something new to the sector.”
Key features
Option 1 offers 7% potential annual returns if the FTSE 100 index is not more than 10% below its starting level at any anniversary, from year 3.
Option 2 offers 9% potential annual returns if the FTSE 100 index is at or above its starting level at any anniversary, from year 3.
Option 3 offers 11% potential annual returns if the FTSE 100 index is 10% or more above its starting level at any anniversary, from year 3.
IFA verdict
Simon Webster, managing director Kent-based Facts & Figures Chartered Financial Planners, said: “We avoid structured products due to the inherent difficulty with assessing their appropriateness for individuals, and udnerstanding the nature of the counterparty risk which is difficult to assess.”
