M&G is to offer a second tranche of its protected Isa product in August but the offering will be sli...
M&G is to offer a second tranche of its protected Isa product in August but the offering will be slightly different to the first version launched in May, writes James Thorneley.
Like the original offering, investors are guaranteed their money back at the end of the product's five year life but the difference will be the opportunity to receive 100% of any growth in the FTSE 100, capped at 60%. The first issue was not capped and offered investors 80% of any growth in the FTSE 100.
Bill Vasilieff, director of group product development at M&G, said: "The feedback we received from IFAs during the first offering suggested they would like another opportunity to invest in the product. However, many said an 80% participation level was a turn-off and a tranche offering 100% participation, even with a cap, was more attractive."
Investors can invest a lump sum of between £500 and £7,000 and IFAs will be paid 3% commission but will receive no renewal commission.
The starting level of the FTSE 100 is at the close of business the day following the last day for receipt of subscriptions, a date yet to be confirmed.
The growth in the level of the FTSE 100 during the five-year period will be calculated as the average over the last six months of the term. For the five years to 30 June the FTSE 100 produced a return of 114.5%.
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