The offer period for the Schroders Secure Growth Formula, a 100% capital-protected product linked to...
The offer period for the Schroders Secure Growth Formula, a 100% capital-protected product linked to the EuroStoxx 50 index, will close on 7 December.
Return on the product is based on the quarterly average growth of the Eurostoxx index. Schroders has retained the right to impose a cap on this growth shortly after the end of the offer period.
The cap will be determined after the offer period ends but will not be lower than 40%. Investments in the product will begin on 19 December.
Schroders will calculate returns by working out the growth of the index from the start of the plan to the last day of each quarter. The cap will apply if the figure is higher than the set cap.
Schroders points out that while the product does offer capital protection, there is always a small risk clients will not get their money back. The product is put together by buying bonds and derivatives. These transactions carry a small risk that the issuers may default, although the group aims to minimise any potential risk by only dealing with highly-rated issuers.
The term of the plan is five years and two months, which means the investment will end on 20 February 2007. The product is Isable and Pepable and there are no initial or management charges. Minimum investment is £7,000.
The closing date for Isa or Pep transfers is 23 November 2001. At the end of the term, it will be necessary to transfer into a further Isa or Pep, or lose the tax-efficient status.
£1bn business since inception
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