Merrion and Investec team up to launch new investment product
MERRION Stockbrokers and Investec have teamed up to launch a new investment product based on the performance of the FTSE.
According to Merrion, the Collateralised Enhanced Kick-Out Plan, is designed to repay an investor’s initial investment and deliver double digit growth if the FTSE 100 remain flat or increases over the account’s terms.
It added that a protection feature diversifies the counterparty risk across five British Banks.
If on any one of the early maturity dates (the end of years one to four of the plan) the FTSE is equal to or above its initial level, the plan will ‘kick-out’ paying a return of 11pc simple interest for each year the plan has been in operation.
In addition, if the account runs for five years and the index is above its initial level then investors get 120pc of any gain in the index.
The original capital is returned in full at the end of the term provided the FTSE 100 does not fall by more than 50pc.
The minimum investment is £20,000 and the plan closes on May 25.