As with previous propositions, the Annual Kick Out – October 2011 offers three reference levels and now offers a potential 13.3% return at the end of year one from a 100% reference level. The 95% and 90% levels offer 10.5% and 8% respectively, all are dependent upon the performance of the FTSE 100 and S&P 500 as well as the ability of Morgan Stanley to pay the growth payment and repay the initial investment.
Gilliat is at pains to stress the maximum risk is that investors could potentially lose all of their initial investment and receive no growth payment. Again, this is dependent upon the performance of the FTSE 100 and S&P 500 as well as the skills of Morgan Stanley.
Adrian Neave, managing director of Gilliat Financial Solutions, says: "Recent volatility has provided a real opportunity to lock in attractive coupons for capital at risk structured products. Global equity markets have fallen considerably from highs earlier this year, and investors remain uncertain as to the immediate outlook. Against this background we believe that the autocall or kick-out pay off presents a very, attractive potential return in the event of any recovery over the coming months and
years.”
The closing date for investment is 24 October, 2011.
