Scottish Mutual is launching the fourth tranche of its Income and Growth Plan as a three-year invest...
Scottish Mutual is launching the fourth tranche of its Income and Growth Plan as a three-year investment plan with safety nets for capital protection.
Available between 30th September and 22nd November, the products are a combination of a maxi or equity Isa or a direct share investment which buys shares in Dublin-based Quaich Investments 8 plc. Entry could be closed if the product is fully subscribed.
Investors can choose whether they want to take the earnings for the Balanced Income and Growth option as either 1.9% quarterly income, 8% annual income or growth of 25% payable at the end of the term.
Those who prefer the slightly safer Steady Income and Growth option will earn 1.45% quarterly income, 6% annual income or 18.5% at the end of the term.
Capital protection clauses have been added to the products, so all initial funds will be returned providing the Eurostoxx 50 index - which is the index tracked - does not fall 25% between 6 June 2003 and 22 November 2005, or at least manages to pull back to its starting level, even if the index does fall more than 25% during the life of the product.
Officials say there is a higher chance of the Eurostoxx 50 index breaching it starting level and falling 25% within the early stages of the product, which is why index tracking is postponed until June next year.
Further details of charging structure and commissions to follow.
Follows Asset Management Market Study
To open in second half of 2019
Regular reminders and updates
9 December 2019 deadline
Joe McDonnell joins as head of portfolio solutions (EMEA)