Its first growth plan, the Equity Index Allocation Optimiser, is a six-year global equity plan, offering potentially uncapped growth based on the DJ Eurostoxx 50 and MSCI Emerging Markets indices as well as the UK and US’s largest indices.
The exact asset allocation mix is skewed retrospectively to the best indices at maturity at which point it will show a weighting in the three best-performing indices – 50% to the best performing index, 30% to the second best and 20% to the third – with a zero allocation to the worst performer.
The product structure means an investor’s capital is at risk though risk is dependent purely on the FTSE 100 index rather than all four indices. At maturity, if the FTSE 100 is below 60% of the initial strike level – set on 30 November – capital will be lost on a one-for-one basis.
Adrian van den Bok, chief executive of Structured Investment Group (SIG), commented: “In the current economic environment, low interest rates, high inflation and market uncertainty remain at the forefront of investor’s minds.
“Identifying the optimal asset allocation at this time is undoubtedly tough, for advisers and investors.
“The Equity Index Allocation Optimiser provides an investment that determines asset allocation by formula, retrospectively, based upon known performance, giving investors the benefit of hindsight. We believe this strategy both optimises returns and more clearly defines and better mitigates the risk to capital.”
The counterparty is Morgan Stanley.
