The Defensive Bonus Plan is a six-year product offering a return of 9% per annum payable on the first anniversary (from year two onwards) where the FTSE 100 is at or above 90% of its initial level.
If the kick-out is not enacted then the capital is returned in full as long as the FTSE 100 has not fallen 50% or more.
Meanwhile, the Protected Growth Plan, which is Morgan Stanley’s longest running structured product, is now in its 47th issue and offers investors an early exit with a fixed return of 28% plus the full return of capital if the FTSE 100 has risen by 10% or more after three years.
If an early exit is not triggered, the plan offers 100% participation in any FTSE 100 growth over the full six-year term and has full capital protection.
Finally, the fourth tranche of the Morgan Stanley FTSE Booster Plan offers a fixed growth return of 60%, plus full return of capital as long as the FTSE 100 has risen, remained unchanged or not fallen by more than 20% over the six-year investment term.
The "booster feature" on the plan kicks in if the index does fall by more than 20% over the term and enables investors to receive a positive return even if the FTSE 100 falls by up to 50% and cushions losses if it falls by more than 50% over the term.
For example, if the FTSE 100 index is at 75% of its initial value at maturity investors will receive a doubling of that final value – 150%. Morgan Stanley said this meant the FTSE Booster Plan offers more capital protection than a product with a "soft floor".
All three plans opened for investment on 15 March and will close on 26 April. They have a minimum investment of £3000 and the counterparty for them are securities issued and guaranteed by Morgan Stanley.
