Premier Fund Managers is launching the eighth edition of its Premier FTSE 100 growth plan which aims to provide investors with annual growth of up to 8 per cent even without any growth in the FTSE 100 stockmarket index.
It is designed as a six-year investment. However, the plan can mature on its annual anniversary in any of the six years, depending on the performance of the index in that year.
The plan will mature at the end of the first year and pay out 100 per cent of the initial investment as well as 8 per cent growth if the FTSE 100 index has not fallen below its initial value at the start of the investment on the anniversary date.
If the index is lower than the start value, the plan continues to the second year and if again on the plan's anniversary the index is at or above the initial value, it will pay out 100 per cent of the initial investment plus 16 per cent growth. The plan will continue if in subsequent years the index does not reach or surpass the start value, with growth payout increasing by 8 per cent each year.
If, at the sixth anniversary, the FTSE 100 has still failed to reach or surpass its initial value at the start of the investment the bond will pay out 100 per cent of the initial investment, providing the index has not fallen by more than 50 per cent over the term.
If the index has fallen by more than 50 per cent over the entire investment term, the plan will lose 1 per cent for every 1 per cent the market has fallen below the start value. Commission is 3 per cent. The plan can be held in an Isa and is available for Pep transfers.
Sales and marketing director Simon Weldon says: “This is a great investment, a chance to earn 8 per cent a year even with no growth in the stockmarket. This product provides investors with the opportunity to sell market volatility in exchange for an exceptionally high rate of growth.”