|
|
|
RISK FACTORS |
 |
|
This Plan may be suitable if
you:
• are aged 18 or over
• have a lump sum of £1,000 or more to invest
• are able to hold your investment for a period of 6 years
• are looking for growth on your investments and to limit
the amount of risk to your capital
• expect the FTSE 100 Index to grow at a modest rate level
over the next 6 years
• can accept a fixed cap on the maximum return you can
achieve
• already have adequate pension provision, life insurance
and money on deposit.
|
|
This plan may not be suitable
if you:
• never want to risk your capital
• are likely to need access to your funds at short notice
within the next 6 years
• don’t want your growth to be restricted by a cap on the
FTSE 100 Index
• don’t have adequate pension provision, life insurance and
money on deposit.
|
RISKS
• If you, or your legal representatives in the event of your death,
transfer or cash in your investment before the Plan ends on 12th
August 2014, you may get back less than you paid in. The value of
your investment before the end date is not directly linked to the
FTSE 100 Index.
• There is a restricted market for the Medium Term Notes in which
this Plan invests. It may, therefore, be difficult to cash in
your investment, or to get information about the value of your Plan
if you want to cash in early.
• Inflation will reduce the future buying power of your money.
• Your money is invested in a Medium Term Note which is a type of
corporate bond, which is a loan to a company. The company we’ve
selected to provide the Notes is financially strong. However there
is a possibility that the company could fail. In the unlikely event
that the Notes provider defaults or becomes insolvent, your
investment would be at risk and you could lose some or all of your
investment. Please refer to ‘Where is my payment invested?’ for more
details.
• If the FTSE 100 Index falls over the three year term, you will
only receive your initial investment back.
• You might get back less than if you invested directly in the
shares that make up the FTSE 100 Index. This is because:
— There is a cap on the investment return, which provides a maximum
of 60% on top of your original investment. This means that if the
Index rises by more than 60%, your returns may be lower than those
from investing directly in the shares underlying the Index.
— If you held shares directly you would be paid an income
(dividends).
— The ‘Smoothing’ that is applied to determine the final value of
the Index will mean that if the Index rises, your return may be
lower than if you had invested directly in the shares underlying the
Index, where ‘Smoothing’ would not apply.
• Past performance of the Index is not a guide to future
performance.
• The value of the Index can fall as well as rise.
• Although the amount you originally invested is protected if you
remain invested until the maturity date, if the Index falls or has
no growth this could mean that your investment does not grow.
• Legislation and tax rules may change in the future.
Please refer to the Brochure and the Terms & Conditions for full
details. |
|
|
|
