Lowes, the leading UK independent financial adviser that champions retail structured financial products, has collaborated with Marina Capital in conceiving and launching the latest in the series of 8:8 Plans.
Following Investec’s recent withdrawal from the UK Retail Structured Products sector, Lowes Structured Investment Centre – based in Newcastle – has turned to Mariana Capital for the latest innovative 8:8 Plan utilising Morgan Stanley as counterparty.
The 8:8 Plan April 2021 is a maximum eightyear investment constructed to offer a potential return of 3.25% for each six-month period it runs, with the possibility of early maturity and the full repayment of the initial capital from the end of the Plan’s second year and semi-annually thereafter.
The launch follows the successful maturity of the Investec/Lowes 8:8 Plan Issue 1 on March 8, 2021, which gave investors a gain of 22.5% plus the original capital – this despite the FTSE 100 being down almost 7% over three years. Applications to invest need to be made before April 23 with the Strike Date of the Plan being April 30, 2021.
Ian Lowes, MD of Lowes, said: “I believe structured products are one of the best kept secrets of the retail financial planning universe. Most people should know about these innovative investment solutions but they’re simply not on their radars. The results have been very impressive – the Investec/Lowes 8:8 Plan Issue one was the 1,001st investment of its type to mature for UK retail investors – all but eight of those produced attractive gains.
“When Investec announced their withdrawal from the UK structured product market we worked with Mariana Capital to create a new 8:8 Plan. This is potentially ideal for those investors that want to reinvest some, or all their 8:8 maturity proceeds. This could also be a fantastic investment opportunity for other investors who are completely new to the sector.”
The new 8:8 Plan utilises the new FTSE CSDI Index, created specifically for structured products by FTSE Russell, the same organisation that calculates and publishes the FTSE 100 Index. The performance of the CSDI very closely correlates with the FTSE 100, tracking the same shares and the returns that can currently be offered on structured products linked to the CSDI can offer comparatively higher potential. Some key features of the new 8:8 Plan are:
-Investment start date: April 30, 2021
-First possible maturity on 2nd anniversary and every six months thereafter
-Early maturity triggered by the index being above the initial index level on any of the first four observations or, no more than 8% below the initial index level from the 4th anniversary onwards.
-13% gain (6.5% per year) payable if maturity triggered on 2nd anniversary
-3.25% more (not compounded) for each further six months. i.e., maturity at three years & six months pays 22.75%
-Eight year maximum term
-Capital at risk barrier: 65% of the April 30, 2021 FTSE CSDI level Capital at risk barrier observation date: April 30, 2029 (only if not matured sooner) Minimum investment £5,000
-Counterparty: Morgan Stanley International: ‘A’ (Strong) rated by major credit rating agencies
-Investment method: ISA/ISA transfer, Individual, Joint, SIPP, Trust, Corporate, Partnership
-Individual/Joint gains taxable only if annual gains from all sources exceed £12,300*
-Can be surrendered from month one (but penalties and loss will result)
-Can be bequeathed, transferred under probate, or gifted mid-term.
Lowes has played a significant role in helping to shape the UK retail structured product sector by championing good product development and governance with a focus on investor outcomes for more than 20 years.
