Incapital launches quartet of plans

Incapital Europe is targeting the tax year end and ISA season with a quartet of structured investment plans.

Open with immediate effect and running through to April 2011, facilitating double tax year ISAs, the plans include: two auto-call strategies covering developed (UK and US) and developing markets (Greater China) plus international equities (UK, US and Europe) with no market risk and a defensive equity income strategy.

Capital Accumulator Auto-Call Plan – Dual Index Series XIV is a six-year auto-call strategy offering 10.5% annual growth potential, from the end of the first year, accumulating by 5.25% every six months thereafter. The plan auto-calls at the first anniversary, or subsequent six-month trigger point, where the FTSE100 and S&P 500 indices are simply at or above their initial starting levels, with no growth in either index required. The counterparty is A-rated Morgan Stanley.

The Capital Accumulator Auto-Call Plan – Greater China Series II is a five-year strategy linked to the Hang Seng China Enterprise and MSCI Taiwan indices, providing 13% growth potential at the first anniversary, accumulating by 6.5% every six months thereafter. The plan auto-calls at the first anniversary, or subsequent six-month trigger point, with no growth required in either index. The counterparty is AA-rated Barclays Bank

Protection from market risk is provided in both Capital Accumulator Auto-Call Plans through a 50% ‘American barrier’, which is monitored daily using closing index levels.

Meanwhile, the Protected Growth Plan – International Equity Series is the firm’s first fully protected strategy since 2009. It provides two times (200%) participation in any upside growth in the international portfolio of mainstream, blue-chip equities, via the FTSE-100, S&P 500 and EuroSTOXX50 indices, to a maximum of 55% over six years, with no exposure to market downside. A 27.5% rise in the portfolio will generate the maximum investor return of 55%. The counterparty is AA-rated Santander UK plc.

Finally, the Equity Income Plan – FTSE-100 Series II is a six-year income plan, paying 1.8% income per quarter (7.2% annually), if the FTSE 100 is at or above 60% of its initial level. Capital is also protected using the same 60% barrier, with a ‘Bermudan’ barrier, which is monitored only quarterly.

All income payments will be achieved together with full repayment of capital, unless the FTSE 100 falls by more than 40% at any quarter during the investment term and remains below its starting level at maturity. The counterparty is A-rated Morgan Stanley.

Chris Taylor, managing director of Incapital, said: “All four plans provide solid asset allocation options, as alternatives or complements to active or passive funds, with double tax year ISA availability, as the tax year end approaches and investors seek solutions to low interest rates, rising tax and uncertain returns from equity and bond funds.’’

All plans are available as ISAs (for 2010/2011 and 2011/2012 tax years: allowing a maximum tax-free investment of £20,880 per individual); direct investment, including through pension schemes such as SIPPs and SSAS. The minimum investment per plan is £10,000 and £5,000 for ISA transfers. Explicit plan charges on all four plans are zero and standard commission for intermediaries is 2.75%, which can be rebated to enhance investments.