|
|
|
RISK FACTORS |
 |
|
If the following statements
apply to you then an investment in the plan may be
appropriate:
• I am looking for returns that are dependent on the
performance of the FTSE 100 Index. However, I am unsure of
the short-term direction of this index and do not want to
miss out should it fall over the first few months of the
term.
•
I wish to protect my investment against adverse movements in
the FTSE 100 Index down to a given level. However I am
prepared to risk losing some or all of my investment should
the FTSE 100 Index fall by 50% or more.
• I understand that the plan returns and the repayment of my
investment depend on Morgan Stanley not going into
liquidation and I am comfortable with this risk.
• I am willing to invest for the full six- ear term in order
to achieve the returns described in the brochure.
• I wish to invest in a tax efficient plan that is eligible
under UK ISA rules. Alternatively, I want to invest in a
plan that is taxed as capital gains rather than income, to
use my annual Capital Gains Tax exemption.
|
|
If the following statements
apply to you then an investment in this plan may not be
appropriate:
•
I am not prepared to put my
capital at risk.
•
I expect UK equity markets to appreciate very strongly over
the next six years and therefore do not want to cap my
potential returns.
•
I may need access to my capital before the end of the
investment term and do not want to take the risk that the
amount I receive from selling my investment in the plan is
less than my initial investment.
•
I am looking for a regular income on my investment.
•
I do not want to take the risk that I earn no return on my
investment.
•
I am not willing to accept the risk of Morgan Stanley going
into liquidation and therefore not being able to pay the
advertised returns and the repayment of my investment at
maturity. |
Additional Risk Factors
•
The return on
your investment is dependent on the performance of the FTSE
100 Index. The past performance of the index is not
necessarily a guide to its performance in the future and
there is no certainty that the future performance of the
Index will be positive.
• The returns of your plan are calculated based on the Best
Entry Index Level and the Final Index Level only. Sudden index movements on these dates will
affect the performance of your plan.
•
The return on your investment is capped. If the FTSE 100
Index were to perform strongly over the investment term, the
returns you receive may be less than you would have received
from an investment linked directly to the positive
performance of the Index.
•
Plan returns do not include any returns from dividend income
or participation in corporate actions, as would be the
case if you invested directly in the shares underlying the
FTSE 100 Index. Accordingly, the return on the plan may, in
some cases, be less than the return from a direct investment
in these shares. Also, unlike direct investments in
the index, investors are not able to hold the plan beyond
its stated maturity date in the expectation of a recovery in
the price of the index.
•
There may occasionally be circumstances that interfere with
the calculation of the FTSE 100 Index. For example, the
calculation of the index may be delayed or prevented if some
of the shares that comprise the index are suspended from
trading on the London Stock Exchange. In such cases, the
return on the plan may need to be adjusted and may be more
or less than might otherwise have been the case.
•
It is usually possible to sell your plan prior to maturity.
However, the proceeds you receive will depend on many market
factors, including, but not limited to, the index level,
interest rates and the credit rating of the issuer.
Consequently, investors selling prior to maturity may
receive less than their initial investment.
• The plan is not the same as a bank or building society
account where capital is guaranteed and readily available
without penalty. There is a risk that Morgan Stanley may go
into liquidation and therefore not be able to repay
investment capital or to pay the advertised returns both
during and at the end of the investment term.
Please refer to the Brochure and the Terms & Conditions for full
details. |
|
|
|
