The fourteenth version of Jubilee’s early redemption plan is linked to the FTSE 100 index and DAX (price) index and will continue for a maximum of 5 years.
The plan, which invests in securities issued by Morgan Stanley BV, also has annual early redemption dates which are triggered if, on any of the annual observation dates, both underlying indices close at or above their respective starting levels. At such time the plan would end and an investor’s original capital would be returned with a bonus of 11% for each year held.
“Kick-out plans remain popular with investors. This product offers the potential for an attractive return linked to the performance of UK and German equities, following the recent set-backs in the markets,” Jubilee head of IFA sales Chris Powell said. “We selected the DAX (price) index as an underlying because it has lower exposure to distressed peripheral economies and markets than many European wide indices.”
Jubilee said capital was at risk when investing in the early redemption plan. If the plan was not already redeemed and either of the underlying indices finished the investment term below their respective starting level, then capital would decline by the proportion that the poorest performing index was below its starting level.
The application deadline for the plan is 3 October with a start date of 10 October and a minimum investment of £10,000. The investment end date is 10 October 2016 and it is open to direct investors, SIPP/SSAS, pension funds, trusts, companies, Stocks & Shares ISA and charities.
