Recent Press

Merchant Capital Growth Plan: FTSE Accelerator

23 February 11

Merchant Capital Limited (“MCAP”) has launched a FTSE Accelerator Growth Plan (the “Plan”). The Plan has a term of five years and offers investors 2.7% growth (up to a maximum of 54%) for every 1% increase in the FTSE™ 100 Index at its maturity.

The Plan’s key features are:


  • A five year, three week term from the investment date.

  • Linked to the FTSE™ 100 Index (the “Index”).

  • On maturity date, the Plan offers investors 2.7% growth (up to a maximum of 54%) for every 1% increase in the FTSE™ 100 Index from its initial level to the final level measured on maturity, therefore offering participation in the underlying Index capped at 20%. The return is subject to counterparty risk.

  • The return of capital at the end of the term is dependent on the performance of the Index and is not guaranteed. If on maturity the Index has fallen by more than 50% from its initial level, investors will lose some or all of their capital. Measurement is only made at maturity.

  • Available as a direct investment and for both 2010/11 and 2011/12 ISAs.

  • Eligibility: for individuals, companies, pension funds, trusts and charities.

  • Minimum investment is £5,000 up to a maximum of £2m.

  • Securities are issued by Morgan Stanley rated ‘A’ by Standard & Poor’s as at 14/02/2011.

  • This is a capital at risk product and an investor could lose some or all of their initial investment.

John Gracey at Merchant Capital commented,

“We are pleased to be offering a new growth plan which provides investors a potential growth payment calculated as a multiple of the growth in the FTSE™ 100 Index. While the growth in the Index is capped at 20%, because of the leverage built into the Plan, if the Index increases by 20% or more over the five year term of the Plan, investors will be eligible for a growth payment of 54%. This represents a potential return (on a simple basis) of 10.8% for each year of the Plan’s term.

“The FTSE™ 100 Index offers exposure to a range of substantial UK listed companies which have businesses operating in all the world’s major markets and can be expected to benefit as the world’s economy gradually recovers from the recession. Investors will receive the full return of their capital so long as the Index is not more than 50% below its initial level on maturity. This protection level is only measured on the Plan’s final level date.

“We are pleased to see Merchant Capital taking up a position as a major independent structured product provider in the UK. The demand for our products shows there is a place for an independent provider of competitive, innovative but straightforward structured products offering investors a real alternative to other offerings in the market”

Key dates:

Direct Investment Close: 4 April 2011
Investment Date: 11 April 2011
Initial Level: 11 April 2011
Final Level: 11 April 2016
Maturity Date: 2 May 2016

IFA commission: 3% of the sum invested. Counterparty information, back-testing and suitability statement packs for interested IFAs are available on www.merchant-capital.com. Contact details below or refer to www.merchant-capital.com

ENDS

Merchant Capital Limited is authorised and regulated by the Financial Services Authority (firm no. 220131).

For further information please contact:-

Merchant Capital
0207 332 2205
Sales Team

Notes to Editors – Merchant Capital Limited

MCAP offers a range of attractive and innovative structured products providing either income or capital growth both to individual investors and IFAs. The philosophy of the business is to have a range of products offering differing investment solutions available throughout the year. In addition, the company will undertake joint ventures with other financial organisations, as well as construct bespoke solutions for advisers to white label and for one off investment requirements.

The company offers underlying assets which are both mainstream, such as FTSETM100 based structures, as well as more innovative ones relating to commodities or emerging markets.