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Key Dates |
| Download Brochure & Applications |
Closing Date: 08 March 2012 |
| Order literature by post |
ISA Transfer closing date: 01 March 2012 |
Summary
• Opportunity to lock in fixed returns: First after two years, and on the anniversaries of the Plan Start Date thereafter, the level of the FTSE 100 Index is recorded. If it is equal to or more than the level of the FTSE 100 Index on the start date of the plan, the ‘Bonus Feature’ will be activated and you will lock in a fixed return (this will be equal to 12.5% multiplied by the number of years since the Plan Start Date). • No need to wait until maturity to receive fixed returns: If the Bonus Feature is activated, you do not need to wait until maturity to receive your locked in returns. You will be given the option to exit the plan at that point and receive this fixed return plus the repayment of your initial investment in full. If you decide to remain invested in the plan once the Bonus Feature is activated, you will have no further exposure to the FTSE 100 Index and will accrue no further return. For example, if the Bonus Feature is first activated in year 3, you will lock in a return of 37.5% (equal to 3 times 12.5%) and cannot lock in any further returns later on in the term. • Some protection from a falling market: If the Bonus Feature is activated, capital is protected. However, if it is not activated, this does not automatically result in a loss. As long as the FTSE 100 Index level at maturity is not 50% or more below its level on the start date of the plan, you will receive the return of your initial investment. If it has fallen by 50% or more, the repayment of your investment will be reduced by the amount the FTSE 100 Index has fallen. This plan is not capital protected and you should be prepared to lose some or all of your initial investment. • Your capital is used to purchase securities issued by Morgan Stanley B.V., a member of the Morgan Stanley group of companies: Morgan Stanley is the Guarantor of the securities. This means that Morgan Stanley will make all payments due under the securities if Morgan Stanley B.V. is not able to make such payments. Investors are therefore exposed to the credit risk of Morgan Stanley. If Morgan Stanley is unable to make payments due to you under the securities, you may lose some or all of your investment. As of 13th January 2012, Morgan Stanley has a credit rating of A- from Standard & Poor's. For an explanation of what these ratings mean see the ‘Credit risk’ section on page 6 of the plan brochure. Considerations for Investing If the following statements apply then an investment in the plan may be appropriate: • I am looking for returns that are dependent on the performance of the FTSE 100 Index. • I expect the FTSE 100 Index to stay flat or have moderately positive performance over the next six years, but with no firm view on timing. • I wish to protect my investment against adverse movements in the FTSE 100 Index down to a given level. • I am prepared to risk losing some or all of my investment should the FTSE 100 Index fall by 50% or more. • I understand that the plan returns and the repayment of my investment depend on Morgan Stanley not going into liquidation and I am comfortable with this risk. • I am willing to invest for up to six years in order to achieve the returns described in the brochure. • I wish to invest in a tax efficient plan that is eligible under UK ISA rules. Alternatively, I want to invest in a plan that is taxed as capital gains rather than income, to use my annual Capital Gains Tax exemption. If the following statements apply then an investment in this plan may not be appropriate: • I am not prepared to put any of my capital at risk. • I may need access to my capital before the end of the investment term and do not want to take the risk that the amount I receive from selling my investment in the plan is less than my initial investment. • I am looking for a regular income on my investment. • I do not want to take the risk that I earn no return on my investment. • I am not willing to accept the risk of Morgan Stanley going into liquidation and therefore not being able to pay the advertised returns and the repayment of my investment at maturity.  |
