Morgan Stanley launches plans

Morgan Stanley has unveiled a number of dual year products allowing investment for both the 2010/11 and 2011/12 tax years.

The Defensive Digital Growth Plan 3 offers a growth return of 58% at maturity as long as the FTSE 100 has not fallen by more than 20% over the investment term. If the FTSE has fallen between 20% and 50% over the term, then capital will be returned in full although no growth return will be paid. If the index has fallen by 50% or more at maturity, then capital will be reduced on a 1:1 basis.

Meanwhile, the FTSE Kick Out Growth Plan 10 for bullish investors offers two potential routes to returns; if the FTSE 100 has increased by 10% or more after three years, the plan will pay a 50% early exit return. If the early exit is not triggered, the plan will continue to maturity where investors will receive 110% of any positive FTSE performance over the investment term with no cap on returns. Capital is protected at maturity as long as the FTSE 100 Index level at maturity is not 50% or more below its initial level.

Morgan Stanley’s FTSE Simple Growth Plan 13 offers 105% of any positive performance of the FTSE 100 over a 6-year term, with no cap on returns and 100% capital protection at maturity.

Finally, the FTSE Protected Growth Plan 40 offers a potential early exit return of 22% after three years if the FTSE 100 has risen 10% or more. If the early exit is not triggered, the plan will continue to maturity where investors will receive 100% of any FTSE performance over the investment term with no cap on returns.

The deadline for submitting applications is 21 April 2011 except for 2010/11 ISA investments where the deadline is 5 April 2011 and ISA transfers where the deadline is 14 April 2011.

The plans are available for direct investment, SIPP / SSAS investors, stocks and shares ISAs, transfers of existing ISAs and discretionary investment as well as investments from charities, companies and trustees. The minimum investment for each plan is £3,000. All plans are likely to be subject to CGT.