Keydata has launched its first five-year Annual Kickout Plan, a structured product which offers investors the choice of early maturity at each plan anniversary, with a rising bonus facility.
Returns are linked to the FTSE 100 index, and early maturity will take place if the index is equal to or higher than its initial level on the anniversary.
If it terminates after one year, investors will receive 113.5% of their original capital. The return rises until, if the plan terminates after five years, they receive 167.5% of their capital.
However, if the FTSE 100 index falls below 50% of its initial value, the value of the capital begins to track the index on a 1:1 basis from that point. With the FTSE above 50% of its initial value, the entire capital is protected. FTSE 100 measurements are calculated on a spot-for-spot basis.
The plan aims to offer investors the ability to generate returns when market growth is slow.
However, dividend income from shares is incorporated into the total returns and investors are not paid more than the planned bonus even if the market outperforms it.
Mark Owen, the sales and strategy director at Keydata, said the plan was for “investors who believe the market is at a pretty low point in its cycle” and want their investment to outperform a fall or small rise in the FTSE.
The closing date for investments is May 8, and there is a 3% initial commission, while minimum investment is £3,600.
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