The Morgan Stanley FTSE Defensive Supertracker Plan offers investors a return equal to more than twice the index’s performance over its six-year return.
The product is set out to deliver 2.4 times any FTSE 100 performance from 90% of its starting level, subject to a maximum return of 72%. This means the index can fall by up to 10% over the term and investors will still achieve a positive return.
“Defensive products have been popular with investors, as they can generate returns even in the event of slight market falls. We believe that our innovative Supertracker plan will appeal to a broad range of investors, as it offers the chance for a decent return even if the FTSE 100 Index doesn't appreciate by much,” Nev Godley, vice president at Morgan Stanley, commented.
Capital will be repaid in full provided the FTSE 100 Index closes at or above 50% of its starting level at maturity. Otherwise, the repayment of capital will be reduced in line with negative performance of the Index.
Provided the FTSE 100 closes at or above 50% of its starting level at maturity, investors will be repaid their capital in full. Otherwise, capital will mirror the underperformance of the index.
Investors have from 5 February until 21 March to invest in the plan, with the deadline for ISA transfers on 14th March 2014. The products commence on 4th April 2014.
