View more on these topics

Twin chance for growth with Merchant Capital

Merchant Capital’s growth plan: twin win is a structured product that is able to produce a return if the UK stockmarket rises or falls.

The plan is linked to the FTSE 100 index for a term of six years and three weeks. Investors will receive double the growth in the index, capped at 94 per cent of the original capital, if the index rises. This means they will get the maximum return if the index rises by 47 per cent but any growth above this percentage will not be passed on. Alternatively, investors will receive 100 per cent of any fall in the index up to 40 per cent. There will also be a full capital return provided the index does not fall by more than 40 per cent without returning to at least its initial value by the end of the term.

To calculate the returns, the closing level of the index is recorded on March 19, 2010. The index is observed during the investment term to see whether the capital protection barrier is breached, and the final index level is taken on March 21, 2016. The final index level is then compared with the initial value to determine how much the index has risen or fallen and this will provide the basis for investors’ final returns.

According to the IFA website StructuredProductReview, Merchant Capital’s plan is unique. Morgan Stanley’s best entry plan issue 2 is a six-year FTSE 100 linked plan that also provides double the growth in the index  but it is capped at a lower level of 80 per cent of the original capital. It takes the lowest of four monthly closing levels of the index as the initial level to ensure investors have the best chance of growth and provides more capital protection than Merchant Capital’s plan. The Morgan Stanley product offers a full capital return provided the index does not fall by more than 50 per cent by the final day of the term – so there is no observation period during the term. However, it has no potential to benefit from index falls.


Liontrust hires John Ions as head of retail

Liontrust Asset Management has appointed John Ions to the new role of head of retail at the firm. Liontrust says the hire is the latest step in rebuilding the business following the resignation of fund managers Jeremy Lang and William Pattisson in January 2009. The firm hired Ross Hollyman as head of a new global […]

Retirement - thumbnail

A downhill stroll?

The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm