Structured investment provider Incapital Europe has launched the Digital Growth Plan for professional advisers.
The plan uses a digital investment strategy to create a fixed growth return of 72 per cent at the end of the six-year investment term if the FTSE 100 is at or above its starting level with no growth in the index required.
Alternatively, if the index is below its starting level at maturity, investors’ capital is returned in full, unless the index has fallen by more than 50 per cent at maturity.
The plan, backed by Santander UK as the counterparty, is the third structured investment to be launched by Incapital Europe since its acquisition of Blue Sky Asset Management in July.
Chris Taylor, managing director at Incapital Europe, says: “The Digital Growth Plan is an exciting launch – a straightforward investment strategy, that creates 72 per cent fixed growth potential, that requires no market growth, whilst significantly reducing market risk. Such strategies are difficult to argue with as core portfolio holdings for investors at this time. This launch also continues to demonstrate Incapital Europe’s significant counterparty and trading advantage, on the back of Incapital’s genuine scale, depth of resource and capabilities.”
Ian Lowes, managing director of IFA Lowes Financial Management, says: “Straight-forward structured investments of this type are undoubtedly popular at this time, and the terms of this plan are certainly compelling. It’s also good to see Incapital bringing strong counterparties to the market. As a complement or alternative to actively managed funds the plan offers certainly presents benefits and advantages as a portfolio holding.”
The plan is open with immediate effect and will close to new business on 6 September 2010, unless over-subscribed, with the deadline for Isa transfers on 20 August 2010. The strike date is 10 September 2010.
The minimum investment per plan is GBP10,000 for direct investment, GBP10,200 for new Isas and GBP5,000 for Isa transfers.
Explicit Plan charges are zero and standard commission for intermediaries is 2.75 per cent, which can be rebated to enhance investments.