Lehman Brothers, with plan manager Defined Returns Limited (DRL), has launched Issue Six of its Enhanced Return Plan.
The plan will offer 100% capital protection with two return options; a potential fixed return of 30% after three years and 60% after five years.
Both options of the plan pay a fixed return amount provided the FTSE 100 index is the same or higher than its starting level at the plan’s maturity.
Paul Adams, head of UK structured retail products at Lehman Brothers, says: “The key to the product is that it combines highly competitive potential returns in a simple, capital protected format."
“With the highest rates in the series so far, ERP6 provides an excellent opportunity for well above risk-free returns, without the requirement of any growth in the FTSE(tm) Index - provided it doesn't finish below its starting level."
The plan is eligible for direct investment, ISA transfers and pension investment via SIPP or SASS, corporate and trusts, although the year three option is not available for ISA investment. The offer period runs until 26 September.
Also available is the Kick-Out Performance Plan Issue Two.
This is a six year investment with five opportunities for early maturity with capital return, the plan is subject to Conditional Capital Protection.
Capital will be returned in full at maturity as long as the FTSE 100 does not fall by more than 50% from its starting level during the investment term.
The plan targets investors seeking higher potential returns with a larger risk appetite.
Investors can choose the Annual Kick-out option with 14% potential return for each year of the plan with five opportunities for early maturity, or the Semi-Annual Kick-out option with 6% potential return for every six months of the plan, with 11 opportunities for early maturity. The plan is open until 26 September.
Both offers are in conjunction with DRL which is acting as ISA and plan manager with Lehman Brothers as hedge provider.
The offer is only available through UK IFAs. Commission rates are 3% for the five year plans and 2.25% for the three year plan.
Minimum investment is £3,600 and the investment start date is 10 October 2008.IFAonline
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