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R916 Keydata Dynamic Growth Plan Plus Issue 8
Product
type: SCARPS accelerated growth
(capital not protected)
Product
summary:
This is a six-year investment linked to
the FTSE-100. It offers investors accelerated returns based on
a market participation rate of 1000%. Total return is capped
at 90%. Capital is not protected at maturity if the index
falls by more than 50% at any time during the product term.
| Points for: |
| 1. Enhanced market participation of 10 times the
FTSE100 performance - subject to a 90% cap on total
investment return |
| 2. According to the product literature gains made on
direct investment will be subject to CGT |
| |
| Points against: |
| 1. Capital is not protected at maturity if the 50%
protection barrier is breached and is reduced on a 1:1
basis if the index fails to recover to the initial level
| |
|
Asset exposure period 6 years
Full term length 6.06 years
Underlying Asset
FTSE-100
Final index level
defined as the closing value of the index on the final
day of the investment.
Market
barrier levels 50% of starting level.
Investment Limits: Minimum £3,600 for
all investments.
Commission: 3%
Wrappers and investment vehicles:
Direct Investment, ISA, ISA transfer, SIPP/SSAS
Tax treatment outside a tax-free wrapper
(according to information from the product
provider): CGT.
Credit
rating of investments made
(according to information from
the product provider): S&P's AA or
better.
|
| Offer
period: |
Opens |
Transfers by |
Closes |
|
n/a |
09/05/2008 |
23/05/2008 |
| |
| Key
dates: |
Strike set |
Final market
reading |
Maturity/payout |
|
06/06/2008 |
06/06/2014 |
13/06/2014 | | |
Product description:
This is a six-year investment linked to the FTSE-100. It
offers investors accelerated returns based on a market participation
rate of 1000%. Total return is capped at 90%. Capital is not
protected at maturity if the index falls by more than 50% at any
time during the product term.
At maturity investors receive
returns equal to ten times the FTSE-100 performance. Index
performance is measured by the percentage difference between the
initial index level and the final index level. Maximum investment
return is capped at 90%, therefore potential index-linked returns
are achieved up to a limit of 9% of FTSE-100 growth. Any index
growth above the 9% level is not passed on to the investor.
Capital is returned to the investor at maturity if the index
does not fall by more than 50% from its initial level during the
product term. If the index falls by more than 50% and fails to
finish at a level at or above the initial index level, the amount of
capital returned to the investor is reduced by 1% for each
percentage fall in the index. If the index does not fall by more
than 50%, the investor receives a full return of capital at maturity
- even if the final index level is below the initial index (but not
by more than 50%). Using our usual index distribution assumptions we
have calculated the probability of this 50% protection barrier being
hit is approximately 5%.
As a typical recovery type product
the product offers good upside potential while limiting the downside
exposure with a capital protection barrier. With a participation
rate of 1000% it offers potential enhanced returns on small to
moderate market gains. The product offers an annual interest rate of
approximately 11.3% if the FTSE rises by only approximately 1.5% per
annum, if the maximum growth is achieved. However capital is at risk
if the 50% protection barrier is breached. This is reflected in the
riskmap score of 2.56.
The product is open to ISA
investment, ISA transfers and direct investment (including SIPP and
SSAS investment). According to the product literature, gains made on
direct investment can be offset against the investors annual capital
gains tax allowance. |
This
product was assessed as follows:
(to see
details about the scoring system, riskmap and
probabilities please see Research
methodology explained) |
Higher plus 9/10
Higher 8.5/10
Basic plus 9/10
Basic 8.5/10
Non tax payer
8.75/10
The riskmap rating is 2.56 |
To compile the overall scores
this
product scored as follows
in our different
categories:
Transparency 8/10
Value
8.58/10
Returns 9.81/10 |
Probability table of product return
outcomes (based on simulated performances)
|
|
|
Outcome range (p.a.) |
Probability (total
return) |
| less than -5% |
|
| -5% to 0% |
|
| 0% to 5% |
|
| 5% to 10% |
|
| 10% to 15% |
|
| greater than 15% |
|
Barrier at 50% of the initial
level. The simulated probability of reaching this
is 5%. |
| |
|
| | | |
|
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: Keydata
homepage
You can email the product provider direct
from here about this product: IFA
email enquiries
Contact
details for Keydata Investment Services
| Telephone: 0207 710 6906 |
Fax: 0207 710 6901 |
| One Angel Court |
| London |
| EC2R 7HJ | |
Report published 18-4-2008 by Future Value
Consultants Limited. © Copyright
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