Structured product provider Morgan Stanley has launched a capital-at-risk plan linked to the FTSE 100, offering investors a return equal to more than twice the index's performance over its six-year term.
The Morgan Stanley FTSE Defensive Supertracker Plan will provide 2.4 times any FTSE 100 performance from 90% of its starting level subject to a maximum return of 72%. Morgan Stanley said the product's mechanics mean the index can fall by up to 10% over the period and investors will achieve a positive return. Capital will be repaid in full provided the FTSE 100 closes at or above 50% of its starting level at maturity. Otherwise, returned capital will reflect the extent of the under-performance of the index. Nev Godley, vice president at Morgan Stanley, said: "Defensive products have...
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