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RISK FACTORS |
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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 initial investment if the UK stock
market falls.
• I understand that the repayment of my initial investment
when the plan matures depends on Morgan Stanley being able
to meet its financial obligations and I am comfortable with
this risk.
• I am willing to invest my capital for the full six year
term in order to achieve the returns described in the
brochure. (Although in some circumstances I may exit the
plan after 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 Capital Gains Tax annual exemption. |
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If the following statements
apply to you then an investment in this plan may not be
appropriate:
•
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 repay
my initial investment and any returns at maturity.
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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.
•
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.
•
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
the issuers of the securities behind
the plan may not be able to meet their obligation to pay the
advertised returns or to repay
investment capital both during and at the end of the
investment term.
Please refer to the Brochure and the Terms & Conditions for full
details. |
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