The Morgan Stanley Bonus Growth Four Plan 4 is available to new investors as well as being a roll-over product for holders of the firm’s first Bonus Growth Plan that has its first kick-out, with a return of 9.5%, on its first anniversary at the end of July.
It allows investors the opportunity to lock in fixed returns of 9.5% per year, from year two onwards, if the FTSE 100 is at or above its initial level. If this feature is not triggered during the six-year term there will still be no capital loss as long as the FTSE 100 on the final observation date is not 50% below the initial level.
The Morgan Stanley Defensive Digital Growth Plan 5 will provide a fixed return of 56% at the end of its six-year term if the FTSE 100 has risen, remained flat or even fallen by less than 20%. Capital protection is provided if the FTSE 100 at maturity is no more than 50% below its level on the issue date.
The Morgan Stanley Kick Out Growth Plan 12 is another issue that benefits from growth in the FTSE 100. offering investors an early exit after three years, with a 50% fixed return if the index has risen by 10% or more or an uncapped, leveraged exposure to any positive index performance during the term, again six years.
Full capital protection comes as long as the index is not 50% or more below the initial level.
Finally, the Morgan Stanley Protected Growth Plan 42 offers a return of capital plus 22% if the FTSE 100 rises by at least 10% after the first three years. If the plan goes through to maturity after six years, investors could receive 100% of any index growth.
