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R1286 Morgan Stanley FTSE Protected Growth Plan 30
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Product
type: Growth kickout (capital
protected)
Product
summary:
This is a capital protected kickout
product linked to the FTSE-100. It offers a fixed return of
26% after three years if the required trigger level of 10%
index growth is reached. If kickout does not occur the
investor receives a return equal to 120% index performance at
the end of a six-year term.
| Points for: |
| 1. Capital is protected at maturity |
| 2. 120% participation in FTSE-100 performance if
kickout does not occur |
| 3. If kickout occurs after 3 years investor receives
a fixed return of 26% |
| |
| Points against: |
| 1. If kickout occurs the investor does not benefit
from index growth above 26% |
| 2. Final index averaging can constrain growth in a
rising market | |
|
Asset exposure period 6 years
Full term length 6.06 years
Underlying Asset
FTSE-100
Final index level
defined as monthly averaging over the final year of the
investment.
Investment
Limits: Minimum £3,000 for direct investment ISA
investment and transfers. Usual ISA maximums
apply..
Commission:
3%
Wrappers and investment
vehicles: Direct Investment, ISA, ISA transfer,
SIPP/SSAS, Trustees of a trust, Corporate/Commercial
Tax treatment outside a
tax-free wrapper
(according to information from the
product provider): CGT.
Issuing Institution / Counterparty:
Morgan Stanley.
Credit rating of
investments made
(according to information from the
product provider): S&Ps A.
|
| Offer
period: |
Opens |
Transfers by |
Closes |
|
22/06/2009 |
27/07/2009 |
03/08/2009 |
| |
| Key
dates: |
Strike set |
Final market
reading |
Maturity/payout |
|
10/08/2009 |
10/08/2015 |
24/08/2015 | | |
Product description:
This is a capital protected kickout product linked to the
FTSE-100. It offers a fixed return of 26% after three years if the
required trigger level of 10% index growth is reached. If kickout
does not occur the investor receives a return equal to 120% index
performance at the end of a six-year term.
Kickout occurs if
after three years into the product term the FTSE-100 has risen by
10% or more. If the trigger level is reached the investor receives a
fixed return of 26% on early maturity. As with all kickout growth
products if the FTSE-100 performs strongly over the first three
years the investor will receive only the fixed return of 26% and
will not benefit in any growth in the index above this
level.
If the trigger level is not reached after three years,
the product continues to term maturing at the end of the six-year
term. At maturity investors receive a return equal to 120% of any
FTSE-100 performance. Performance is defined as the percentage
difference between the initial index level and the final index
level. As capital is protected at maturity investors receive the
full return of capital regardless of the performance of the
FTSE-100.
The final index level is subject to monthly
averaging over the final year and is calculated using the monthly
closing levels of the FTSE-100 from 10 August 2014 to 10 August 2015
(13 observations). Final index averaging protects the investor from
late falls in the index, however it can constrain growth in a rising
market resulting in lower potential returns.
The product has
a relatively low riskmap score, reflecting that it is likely to
appeal to cautious investors seeking returns via exposure to the
FTSE-100 while protecting their capital.
As stated in the
product literature, the issuer of the assets for this product at the
time of writing is Morgan Stanley.
According to the product
literature any gains made via direct investment will be subject to
capital gains tax (CGT). The plan is open for ISA investment, ISA
transfers and direct investment including SIPP and SSAS investment.
|
This
product was assessed as follows:
(to see
details about the scoring system, riskmap and
probabilities please see Research
methodology explained.
NB All scores and riskmap include both
market and credit risk. The probabilities shown assume
that no default event occurs. |
| Non / tax-free e.g.
ISA: |
7.35 / 10 |
| Basic: |
7.21 / 10 |
| Higher: |
7.21 / 10 |
| Riskmap: |
2.02 / 5 | |
To compile the overall scores
this
product scored as follows
in our different
categories:
Value rating:
8.59/10
Simplicity rating:
8.5/10
Return rating: 5.25/10
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Report first published
22-06-2009. Scores last updated
17-07-2009. Scoring: version 7. To see
all published scores for this product click
here |
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Rating vs riskmap
chart |
Probability table of
product return outcomes
|
| |
 |
| Return bucket (% p.a.) |
< -5 |
| Probability (%) |
0 |
| Return bucket (% p.a.) |
-5 to 0 |
| Probability (%) |
0 |
| Return bucket (% p.a.) |
0 to 5 |
| Probability (%) |
31.56 |
| Return bucket (% p.a.) |
5 to 10 |
| Probability (%) |
61.3 |
| Return bucket (% p.a.) |
10 to 15 |
| Probability (%) |
3.29 |
| Return bucket (% p.a.) |
> 15 |
| Probability (%) |
3.85 |
|
| View
more detailed probability tables for this
product | |
Performance
Statistics:
|
| Annualized volatility
(product): |
13.96% |
| Annualized volatility
(underlying): |
38.79% |
| Product Sharpe
ratio: |
3.60% |
| Market Sharpe
ratio: |
37.70% | |
Upside and downside
measures:
|
| Upside
measure: |
7.41% |
| Downside
measure: |
0.00% |
| Upside measure beyond
risk-free: |
4.30% |
| Downside measure beyond
risk-free: |
1.23% | |
Equivalent initial
portfolio:
|
| Underlying: |
43.65% |
| Bond: |
52.00% |
| Cash: |
4.35% | |
Initial
sensitivities:
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| Delta: |
0.44 |
| Rho: |
-0.28 |
| Vega: |
0.01 | | | | |
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Information from the product
provider:
Future Value Consultants Limited does not
control external sites and accepts no responsibility for the content
contained therein.
Here is a link to the product provider
you may find of interest: Morgan
Stanley homepage
You can email the product provider
direct from here about this product: IFA
enquiries
Contact details for
Morgan Stanley & Co. International Limited
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Report published 22-06-09 by Future Value
Consultants Limited. © Copyright
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