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Investment returns linked to the performance of the FTSE 100™
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No Index growth required to achieve quoted returns
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Early maturity will be triggered as long as the levels of both Indices are at or above their opening levels at any anniversary date
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100% capital return provided neither Index falls by more than 50% over the term of the investment
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Offer period: 15th April to 18th June 2008, except for ISA and PEP transfers, where applications must be received by 4th June 2008
| Investment Term: | 6 years and 14 days, with the potential for early maturity. Maturity will be triggered if the levels of both Indices are at or above their opening levels on an anniversary date of the Plan. |
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| Availability: | As direct investments, stocks and shares ISA, ISA Transfers (Including former PEPs), and for pension funds, trustees and companies. |
| Indices | FTSE 100 |
| Investment Return |
13%
per annum (simple) for each year the Plan is in
force, so the returns at each possible maturity
date would be
13%
(end of year 1),
26%
(end of year 2),
39%
(end of year 3);
52%
(end of year 4);
65%
(end
of year 5) or, if the plan runs a full 6 year
term, and the Index Levels are at or above their
Opening Level,
78%. If the Index Level is below its Opening Level no investment return will be payable. |
| Capital Return |
Capital will be returned in full unless, at any
time during the investment term, the close of
business level of the Index is more than 50%
below its Opening Level. If this happens capital
will still be returned in full as long as the
Final Level of the Index is at least equal to
the Opening Level. If not, capital will be reduced by 1% for each 1% the Final Level is below the Opening Level. Please see the brochure for a full explanation of the calculation, plus examples. |
| Counterparty Risk |
The issuer of the assets will have a current
rating from Standard and Poors, or a similar
rating agency, of at least A+. While we consider
it unlikely that such an institution would be
unable to meet its obligations, if it were
unable to do so, investors could lose some, or
all, of their investment. Counterparty risk is
common to all similar investments |
| Tax | Under current tax legislation gains on assets held in an ISA will be free from any tax, while gains on direct investments will be subject to Capital Gains Tax. |
| Interest | Interest will be credited at 3.5% on subscriptions received and held in our client account up to the investment date. |
| Charges |
There are
no initial or ongoing charges. Charges are
included in the pricing of the investment. Early encashments and transfers during the investment term will be subject to an administration charge. |
| Securities | Securities will be structured to provide the returns shown in the plan brochure, and purchased for each investor. These may be notes, warrants, shares or deposits depending on the nature of the investment. |
