Incapital Europe has launched its first structured investment plans just two weeks after completing the acquisition of Blue Sky Asset Management.
Its “twin-issue” Capital Accumulator Auto-Call – Dual-Index Series Plans 9 and 10 deliver growth potential that require no underlying stock market growth, with Issue 9 using AAA-rated Rabobank and Issue 10 backed by AA rated Santander UK.
Issue 9 provides growth potential of 12.25 per cent annualised over a six-year term, and Issue 10 13.25 per cent.
Both plans apply the early closure auto-call feature from the second anniversary, delivering a 24.5 per cent or 26.5 per cent return and full repayment of capital if the FTSE 100 and S&P 500 Indices are simply at or above their initial levels – with no growth in either index required.
If the plans do not close early during the investment term investors will be protected from a defined level of stock market risk at maturity, providing the indices do not fall by more than 50 per cent and remain below their starting levels at maturity.
The plans build on and develop the Capital Accumulator Series which was originally launched by Blue Sky.
Chris Taylor, managing director at Incapital Europe, says: “The launch of the Twin Capital Accumulator plans is the first fruit of the Incapital acquisition and puts into practice our strategy of leveraging significant counterparty and trading advantage, on the back of Incapital’s genuine scale, depth of resource and capabilities.
“Providing a choice of counterparties enhances an already award-winning growth plan series and enables professional advisers to diversify their client’s credit exposure between two the of the world’s strongest financial institutions – with total discretion. Such diversification is now a regulatory requirement for independent advisers and the tangible benefits of Incapital’s unparalleled independent ‘Counterparty Platform’ will become increasingly apparent as Incapital progress plans to expand its reach over the remainder of 2010.”
The Capital Accumulator Plans are open with immediate effect and will close to new business on 16 August 2010, unless over-subscribed, with the deadline for Isa transfers on 2 August. The strike date is 20 August.
They are available as Isas, for Isa Transfers, through pension schemes, including Sipps and Ssas, and for corporate, trustee and charity investment. The minimum investment per plan is GBP10,000 for direct investment, GBP10,200 for new Isas and GBP5,000 for Isa transfers.