ANNOUNCEMENT: UK Adviser is now PA Adviser. Read more.

Morgan Stanley unveils FTSE 100 Bonus Fund II

Morgan Stanley is to launch a second FTSE 100 Bonus Fund suited to offshore bond investment.


The firm said the total fee for the fund – which is suitable for investment within an offshore bond – amouned to 0.5% per annum, charged upfront. The company further noted the product was designed for investors who required a fixed capital return based on a “neutral to slightly positive view” of the FTSE 100.

The fund will record the level of the FTSE 100 on five anniversaries of the start date, starting in year two, and will terminate if the index is flat or has displayed positive performance at that date, paying out the initial investment plus a return equivalent to between 7.5% and 8.5% per annum.

Investors will regain their initial investment if the FTSE 100 finishes at or above 60% of its initial level. If the index closes below that level, the principal return will be reduced by 1% for each 1% that the index level at maturity is below that seen at the strike date.

Morgan Stanley says the bonus strategy should rollover when the strategy terminates, either through early termination or at maturity, meaning investors can realise their return by selling shares or continue on in the fund.

The strike date is anticipated to be 14 April, with an official launch planned for 4 May. The fund will be domiciled in Ireland, collateralised by G20 government bonds and run by Morgan Stanley subsidiary FundLogic.

Latest Stories