This works through a triple kick-out feature, which will trigger a 50% fixed return if the FTSE 100 Index has risen by 5% from its starting level on either the plan’s third, fourth of fifth anniversaries.
If the six-year plan does not kick out early, investors will receive 10 times any FTSE 100 Index performance at maturity, capped at a maximum return of 50%.
Investors’ initial capital is left unprotected if the FTSE 100 has fallen by 50% or more on the maturity date of the plan.
Nev Godley, vice president at Morgan Stanley, said: "Our new Accelerator Bonus Plan is designed to offer investors the potential to receive a 50% return after only three years. If the Plan doesn’t kick out early, then the client could benefit from the gearing feature at maturity as this would return 10 times any index growth, capped at a 50% return (i.e. 10x the first 5% growth). We feel that these features, coupled with considerable downside protection, make this a very attractive investment."
Two of Morgan Stanley’s other structured products have also had terms updated, the FTSE Defensive Bonus Plan 4 and FTSE Booster Plan 7, in an attempt to suit the market views of a bearish or neutral investor too.
All three plans open for investment on 1 August and close on 12 September and their strike date is 3 October.
