We all know the adage about past performance, so what do you expect the future to bring?
The truth is that whilst most of us, for very good reason, expect the stock market to rise over the medium to long term, none of us know where it will go in the short term. We know that trying to time the markets can prove to be very costly, so for most, the answer is to invest wisely, hope for a fair wind and ride out any storms. Indeed, this strategy works over the medium to long term – albeit better for some than others but only with the benefit of hindsight.
What if there was a more defined solution? The Investec/Lowes 8:8 Plan draws upon decades of experience in the structured investment sector, which has, with very few exceptions, delivered consistent results. All structured investments have defined returns, that will be delivered on defined dates, if defined market circumstances are met.
The defined strategy of the 8:8 Plan is such that there has never been a day in history that such a strategy could have commenced and it did not produce a successful outcome for the investor1. The future may, however be different but once you have assessed the terms you can decide whether it might be so different that the strategy will not pay-off and if you reach that conclusion we would like to know what alternative investment strategy you believe will work better.
- The 8:8 Plan is a FTSE 100 linked strategy that is designed to run for between 2 and 8 years.
- It can be held within an ISA, or SIPP or, outside of a tax shelter where returns will fall under capital gains tax rules. It is also available for trusts, corporates and charities.
- It will mature on the first semi-annual observation date (from the second anniversary onwards) that the FTSE 100 is not more than 8% below the initial level recorded at commencement.
- When it matures it will pay a fixed return for each six-month period it has been in force (3.65% for Issue 13 = 7.3% per annum)
- If the FTSE 100 is more than 8% below the initial level at every possible maturity date and still more than 8% below on the 8th anniversary, no gain will be achieved, original capital only will be returned at maturity, unless the FTSE 100 is more than 40% lower in which case an equivalent loss will arise. i,e, FTSE down 45% investment loses 45%.
- The returns and return of capital are dependent upon Investec Bank meeting their objectives.
If you’re confident that the FTSE 100 will rise in the short to medium term you can be confident that the 8:8 Plan will mature on the 2nd anniversary with a 14.6% gain*.
If you’re confident that the FTSE 100 will go broadly sideways in the short to medium term, then the same applies.
If you’re convinced the market will fall, but still rise over the medium to long term, then the 8:8 Plan will increasingly reward you for the time invested, provided the recovery, to at least 92% of initial level, occurs by the 8th anniversary*.
If you’re convinced that you know that you don’t know, then the same applies.
Is it not time to consider one of the most innovative solutions to be made available to the retail market for years?
The 8:8 Plan is one of many such investments that contribute to Lowes Financial Management’s unique approach to managing and building wealth. Why not talk to a Lowes Consultant to discover more and learn why over 95% of our clients would recommend Lowes to a friend, relative or colleague.
For a free initial Consultation with a Lowes Consultant:
Call: 0191 281 8811
The 8:8 Plan is a capital at risk investment, suitable for part of an investment portfolio that can be committed to a maximum holding period of up to 8 years. Past performance is not a guide to the future.
* Terms of Issue 13. Returns subject to the continued solvency of Investec Bank
- Source StructuredProductReview.com & Future Value Consulting
Disclosure of Lowes' Interests
Lowes has provided input into the concept, development, promotion and distribution of this Plan. The Provider’s charges/fees are built into the terms of the investment - Lowes has a commercial interest in the Plan as a result of its involvement in its development and promotion. All Plan returns are stated after allowing for the provider’s charges/fees. The aim of developing Plans in co-operation with providers, with Lowes input, is that they should be amongst the best available in the market. Lowes has robust systems and controls in place to ensure that it manages any actual or potential conflicts of interests in its activities.
Lowes Financial Management, Fernwood House, Clayton Road, Jesmond, NE2 1TL. Authorised and regulated by the Financial Conduct Authority.