Now in its 11th issue, the plan is collateralised using AAA-rated UK government bonds on a daily basis, which means if Morgan Stanley defaulted during the six-year term the previous day’s value is secured by its collateral.
A kick out feature is also available on the annual anniversary of the plan from year two onwards, which allows investors to redeem early and receive a fixed growth return and capital repayment.
This depends on the FTSE 100 being equal to or more than its level on the plan’s start date.
The fixed growth return will be 7.5% multiplied by the number of years the plan has been live and if the kick out feature is not repaid the capital is repaid in full at maturity as long as the index closes above 50% of its initial value.
If the FTSE 100 closes lower than the 50% level, the capital return will be reduced on a 1:1 basis in line with the negative performance.
Nev Goldley, vice president at Morgan Stanley IQ, said: "Since the close of the last Morgan Stanley Gilt-backed Plan in early October we have continually been asked when the next one is opening.
"The current pricing environment has allowed us to launch it now and we hope clients will be pleased to note we are able to offer the same competitive rate of return as with the last launch."
The minimum investment for each plan is £3,000 and the plan closes for subscription on 14 December.
