|
Is this product right for you?
|
The Plan may be suitable for
you if;
if are aged 18 or over and:
you have a minimum lump sum of £3,000 to invest
you do not need access to your money before the end of the
six-year fixed investment term
you want to know your original investment amount is
protected from market risk at maturity
you are comfortable with the risk of the various parties
involved in the investment becoming insolvent
you want the potential option of using your capital gains
tax (CGT) annual exemption allowance (although you recognise
that the rules governing taxation and exemptions may change
before the investment matures and that this does not apply
to ISA investments)
you are looking for a tax-efficient investment available
through an ISA
you are looking to transfer your existing stocks and
shares or cash ISAs.
|
|
The Plan may
not be suitable for you if;
you may need access to some
of your money before the end of the fixed term and cannot
risk getting back less than you invested
you do not have enough cash for unexpected
emergencies or planned expenditure
you want a regular income from your money
you are a regular saver and prefer to add to your
investment from time to time
you are looking for a short-term investment
you cannot risk not earning any return on your investment
you are unwilling to accept the risk of losing your
initial investment, in the event the companies involved were
to become insolvent, as the capital is protected, not
guaranteed
this is your only investment, rather than part of a wider
portfolio
you are seeking an ISA investment, have invested in an ISA
in the current tax year, and have already used up your full
ISA allowance
|
Risk Factors
This is not a
guaranteed investment. The plan is not the same as a bank or
building society account where capital is guaranteed and readily
available without penalty. Nor is it the same as a direct investment
in stocks and shares, where there is neither guarantee nor
protection for your capital.
In this case the investment involves a series of contracts between
various parties (known as the counterparties), the purpose of
which is to return your capital (the protected element of the
plan) together with the growth option you have chosen at the end of
the investment period.
If one or more of these counterparties were to go into liquidation
you could lose some or all of your investment and, in these
circumstances, you would not be able to make a claim through the
Financial Services Compensation Scheme. In addition, if any
unexpected liabilities or expenses arise which have not been allowed
for when setting the terms of the plan, then you may not get back
all of your investment.
The terms of the preference shares, which can be found in the
Securities Note, set out how the returns are calculated. The
Securities Note is the legal document setting out all the Terms and
Conditions which apply to the issue of the preference shares by
Sienna. It also explains how the shares are designed to deliver the
returns offered. They stipulate that, in certain circumstances, one
or more of the funds in the Protected Portfolio or Global Vista
Protected Portfolio may have to be replaced with a comparable
investment fund (or with a cash fund if no comparable fund is
available). Additionally, the calculation of the return may be
adjusted to take account of market and/or fund disruption. If either
of these happen, the return will be affected and may be more or less
than would otherwise be the case.
The amount you get back will be determined by the performance of
the investment funds to which the UK Protected Portfolio and Global
Vista Protected Portfolio are linked. These funds each have specific
objectives and associated risks which differ according to the assets
held within them. For example, some of the funds invest in
money-market assets, including deposits with banks and other
financial institutions. Any growth from these funds will fluctuate
as interest rates change, and if any of the institutions involved
were to become insolvent or fail, the performance of the protected
portfolio involved would be adversely affected. Similarly the 'Aviva
Investors Property Trust' invests in property, and because this can
be difficult to sell, the value of the fund could, in some
circumstances, be adversely affected. Details of the objectives and
particular risks for each of the funds within the UK Protected
Portfolio and the Global Vista Protected Portfolio are available in
the 'Skandia Funds List' which your financial adviser will be able
to provide you with.
The growth returns from the plan are linked to the performance of
the funds within the UK Protected Portfolio or Global Vista
Protected Portfolio. The use of averaging in calculating growth over
the fixed term can result in higher returns when compared with
investing directly in the funds themselves. This could happen for
example when markets begin to fall after a period of sustained
growth. It can also result in lower returns. This could happen for
example if the market rises consistently over the period of
averaging. In such circumstances, you would not get back as
much as you would if you had invested directly in the funds.
In some circumstances the fund managers for the funds in the UK
Protected Portfolio and Global Vista Protected Portfolio have to
make retrospective changes to the price of their funds and this
could adversely affect the quarterly averaging calculations and
therefore the price of the preference shares. However, if such an
amended price is published after the final quarterly averaging date
of 23 May 2016 it will not be taken account of in the final
averaging calculation.
It may not be possible to access your money when you want to,
therefore this investment is unlikely to be suitable as the sole
component of an investment portfolio.
The capital protection offered is valid only at the end of the
fixed term so early withdrawals do not have that benefit. If you
cancel your investment but MSI plc does not receive your request to
cancel until after 21 May 2010 you may get back less than you
invested.
If your circumstances change, forcing you to sell or transfer your
investment before the maturity date, you may not be able to sell
your plan immediately and you may get back less than you invested.
If you withdraw your capital during the six-year term of the plan,
your initial investment will not be protected. This means you may
get back less than you invested.
The Securities Note for the Sienna preference shares sets out in
more detail the rewards and risks attached to an investment into the
Protected Portfolio Investment plan. This is available on request
and will be automatically sent to you if you make an investment.
The value of investments can fall as well as rise and past
performance is no guide to future investment performance.
ISA investment risks
If you invest in the plan through an ISA and then decide to
surrender your ISA later in the same tax year, you might not be able
to invest in another ISA for that tax year. This means you could
lose your ISA entitlement for that tax year.
If you are investing in the plan by transferring an ISA you could
lose income and growth if markets rise while the transfer is
pending. If the transfer is not completed by 24 May 2010 you will
miss the deadline for this investment and you may not be able to
reinstate your
previous ISA.
Tax risks
The levels and basis of taxation and reliefs from taxation for
companies, trustees and individuals can change at any time. The
amount of tax paid and the value of any tax reliefs received depend
on individual circumstances.
The favourable tax treatment of stocks and shares ISAs may not be
maintained.
Please refer to the Brochure and the Terms & Conditions for full
details.
|
