|
|
|
RISK FACTORS |
 |
|
If the following statements
apply to you then an investment in the plan may be
appropriate:
• I wish to benefit from growth in the UK stock market,
specifically, the FTSE 100 Index.
•
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 FTSET100 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 my capital for the full six year
term (although in some circumstances I may exit the plan
after only three years)
• 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 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 repay my investment.
|
Additional Risk Factors
•
Plan returns are based 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 Initial Index Level,
the Early Exit Index Level
and the Final Index Level only. Sudden index movements on
these dates could affect the performance of your plan.
•
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.
•
If the Early Exit feature is triggered you will receive a
fixed return. If the FTSE 100 Index were to perform strongly
up to the Early Exit date 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.
•
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. |
|
|
|
