The plan opened on 26 January and closes on 8 March, with monthly income paid at a rate of 1.45%. Its strike date is 29 March and capital protection is based on the FTSE 100 not closing at or below 50% of its opening level on this date.
This is the same protection feature as for its FTSE Bonus Growth Plan 7, a six-year plan with the same opening, closing and strike dates, that the company has also announced today. Its growth plan kicks out with a return of 12.5% from the first observation date.
The growth plan’s payment is predicated on the FTSE 100 being at the same level or higher than on its start date.
Nev Godley, vice president, Morgan Stanley said: “Many clients are still looking for simple products offering an unconditional income stream. Given the longer-term uncertainty over base rates, an investment that allows investors to re-evaluate their investment in a shorter time frame may prove attractive.
“The FTSE Bonus Growth Plan 7 has been launched in reaction to the ongoing appetite for kick out products from investors. We have optimised the payoff by deferring the first kick out observation to year two, enabling us to offer a competitive coupon of 12.5%pa without over-complicating the product or introducing a second underlying asset.”
