Bringing you live news and features since 2006 

British pounds

Morgan Stanley re-issues gilt backed plan after 18 month gap

RELATED TOPICS​

Morgan Stanley has launched the first Morgan Stanley FTSE Gilt-Backed Growth Plan since June 2012, due to a more favourable pricing environment and continued demand for gilt-backed products.

The plan is collateralised with UK government bonds in order to reduce counterparty risk.
 
It has a series of kick-out dates starting from the second anniversary of the plan. If on any of the kick out dates or the plan end date the closing level of the FTSE 100 Index is at or above its initial level, the plan will mature and investors will receive a fixed return of seven per cent multiplied by the number of years that have passed since the plan start date.
 
If the kick-out feature has not been triggered and the plan runs for the full six-year, investors will receive their full capital back at maturity as long as the index has not fallen by 50 per cent or more on any day during the six-year investment term. However, if the index closes at or below 50 per cent of its initial level on any day during the term, capital repayment will be reduced by the amount the FTSE 100 Index has fallen from the plan start date to the plan end date.
 
Nev Godley, vice president, Morgan Stanley, says: “There is continued demand from investors and advisers alike for conservative plans with simple payoffs.  As gilt yields have improved recently, we were able to price a collateralised plan with a simple payoff that could be beneficial to investors. Our gilt-backed series has been one of our most popular product streams as it offers a way to increase counterparty diversification and reduce counterparty risk.”
 
The plan opened for investment on 25 November 2013 and closes on 17 January 2014. It is suitable for direct investment, stocks and shares ISA/transfer of an existing ISA, SIPP, SSAS and also investments from charities, companies and trustees. The deadline for ISA transfers is 10 January 2014.

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by