Morgan Stanley issues FTSE Gilt-Backed Growth plan 4

Morgan Stanley has begun selling the FTSE Gilt-Backed Growth plan 4.

The structured product offers a fixed return equivalent to 8.5% per annum, paid on the first anniversary the FTSE 100 is equal to or above its starting level.

Should this occur, investors may exit the plan at this point and receive their initial investment back in full plus the fixed return.

If the index does not record positive performance on any of the anniversaries, capital is protected as long as the index does not close below 50% of its starting level.

Sophie Barnett, vice president, Morgan Stanley says: "At a time when counterparty was the key issue, our FTSE Defensive Gilt-Backed Growth plans offered a way for investors to mitigate that risk as much as possible.

"The FTSE Gilt-Backed Growth plan 4 is suited to investors looking for a degree of certainty during the current uncertain market outlook, but who also want a certain level of buffering against market falls."

The six-year plan is open for investment until 10 September 2010, set at a minimum of £3,000. It is available as ISA, SIPP and SSAS, with commission at 3%.