The first of the plans – the Morgan Stanley FTSE Defensive Digital Growth Plan 7 – is a two year product that will return 12% to investors if the FTSE 100 Index has not fallen by more than 15% at maturity.
If the index has fallen by more than 15% at maturity no growth return is generated, but capital will be returned in full as long as it has not fallen by more than 50%.
Meanwhile, the Morgan Stanley Defensive Bonus Plan 3 is a six-year plan offering a return of 11.5% per annum (an increase of 2% on the last tranche of the Defensive Bonus Plan) which is payable on the first observation date from year two onwards as long as the FTSE 100 is at or above 90% of its initial level.
If the plan does not kick out then capital is returned in full at maturity as long as the FTSE 100 is not 50% or more below its initial level.
Nev Godley, vice president at Morgan Stanley, said: "The plans’ most attractive feature is their ability to generate returns in a negative market and in this economic environment we think they will prove popular again. Not all investors share the same opinion as to how long to maintain a defensive strategy so we are offering a defined short term and the potential for a longer investment period to accommodate these views.
"The Eurozone crisis shows no sign of abating but investors are still seeking higher returns, so we believe these plans provide a sensible strategy to achieve that aim with palatable and understandable levels of risk."
