The Plan has been designed to offer an alternative investment opportunity given the recent falls in savings rates and continued volatility in the equity markets. Clients benefit from the potential growth in the FTSE 100 Index with the added security of full capital protection.
The Plan is comprised of a six-year structured product linked to the performance of the FTSE 100 Index and providing 100% capital repayment at maturity after six years, plus 100% of any rise in the Index subject to a maximum return of 60%. The full investment term is six years but it does have the potential to mature early at the end of year four or five, with a fixed payment of either 30% after four years, or 40% after five years.
The minimum investment is £7,200 up to a maximum of £1 million. 3% commission is payable and the Plan is suitable for ISAs, ISA Transfers, SIPP Corporate, Trustee and Direct Investment. A double ISA opportunity is available as a stocks and shares ISA for both 2008/09 and 2009/10 tax years. The Plan’s offer period is up to and including the 16th March 2009.
This is Paradigm’s second collaborative initiative with Santander Private Bank, the parent of Cater Allen, following last year’s delivery of its UK Banking Plan to members.
Bob Hunt, Partner at Paradigm Group and Chief Executive of Paradigm Mortgage Services, commented: “Paradigm is delighted to be working with Cater Allen once again and offering its new Protected Growth Plan 1 to our members. Base Rate cuts continue to impact on the savings rates clients are able to obtain, while the FTSE 100 has obviously seen sharp falls over the last year. The Protected Growth Plan 1 provides an opportunity for suitably qualified advisers to offer appropriate clients an alternative proposition with the peace of mind that the client’s capital is fully protected.
“The plan offers investors a ‘double ISA’ opportunity, available as a Stocks and Shares ISA for this tax year and next. The Plan also accepts ISA transfers. This offering continues Paradigm’s commitment to providing access to a full range of investment opportunities for our members. Members can find out more about the Plan itself by visiting the Paradigm or Cater Allen websites.”
Richard Howes, National Account Director at Cater Allen, said: “We’re delighted that Paradigm has recognised the great opportunity the Cater Allen Protected Growth Plan 1 provides. Being part of the Santander Group allows us to continually bring competitive products to the IFA market, enabling advisers to meet the needs of their clients with added peace of mind.”
