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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 am looking for returns that are dependent on the
performance of the FTSE 100 Index over a 6-year investment
term.
I wish to benefit from the
plans deceleration feature. This means that if the FTSE
100 Index falls over the term, the loss on my
investment is limited to 1/5 of the negative index
performance.
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- year 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.
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If the following statements
apply to you then an investment in this plan may not be
appropriate:
I am not prepared to put any of 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 the repayment of my investment at
maturity.
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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 Initial
Index Level and the Final Index Level only. Sudden index
movements on the dates that these levels are recorded 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.
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 quality of the issuer.
Consequently, if you sell prior to maturity, you may receive
less than your 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. |
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