Insight Investment is looking to launch its first structured product on 19 May offering a maximum 8...
Insight Investment is looking to launch its first structured product on 19 May offering a maximum 85% return on capital after six years.
The plan provides five times the growth in the index over this period, up to a maximum 70% return but will provide a further 15% bonus if the FTSE has doubled.
This means for the Accelerated Investment Plan to produce a 70% return to investors, the index has to produce a total return of 14% over six years, 5% for every 1% increase in the index.
If the index is up 50% by the product's third anniversary, the bond will mature early, returning initial capital in full plus 50% growth. If the index has not achieved this growth after three years, it will run for the full-six year term.
The product offers 50% capital protection, falling on a one for one basis should the index drop by more than that amount and not return to its starting level.
As things stand, the product is to launch on 19 May and close on 6 June for Pep and Isa transfers and 27 June for normal business, although this is subject to change. Minimum investment into the plan is £5,000 and intermediary commission 3%.
Insight's own management fees are built into the product and the group would not reveal its profit assumptions.
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