In its first collaborative initiative of this kind with Santander, the parent of Cater Allen, Paradigm is offering its adviser members access to the Plan which provides clients with the opportunity to participate in the potential growth of four of the UK’s leading banking stocks with 100% capital protection at maturity.
The Plan is offered with a six-year maximum investment term with potential early maturity after one, two, three or four years. The plan will mature early if, on any of the annual Observation Dates (in years one to four), the Official Closing Price of each of the four shares in the basket is at or above its Official Closing price at the start of the investment on 27 November 2008. In this event the investors will receive 100% of their initial investment plus a fixed payment equivalent to 11% pa.
The maturity proceeds are linked to the performance of a basket of four UK banking stocks: Barclays Group plc, HSBC Holdings plc, Lloyds TSB Group plc and Royal Bank of Scotland Group plc.
The plan is also offered with unlimited growth potential if it reaches final maturity after six years, and is suitable for ISAs, ISA Transfers, SIPP and Direct Investment.
Bob Hunt, Partner at Paradigm Group and Chief Executive of Paradigm Mortgage Services, commented: “Paradigm is pleased to offer our members access to Cater Allen’s Selected UK Banking Plan 2 and the opportunities the fund presents. The banking sector is currently in a state of flux however the ongoing Government initiatives are designed to provide stability and deliver confidence to the markets. With banking shares now at particularly low levels this Plan could benefit from any potential increases the four banking stocks experience in the months and years ahead, plus there is the added peace of mind that 100% of the initial investment will be returned to the investor.
“Paradigm is committed to offering a wide range of products and services and, at a time when many advisers are looking to diversify, this is an exciting structured product to add to their offering. This collaboration between Paradigm, one of the UK’s fastest growing distributors, and Cater Allen, part of Santander, one of the world’s strongest banks, is the first we have delivered however there are plans for further collaborative initiatives of this kind in the future.”
Richard Howes, National Account Director at Cater Allen, said: “We are pleased to announce the launch of the Cater Allen Selected UK Banking Plan 2 which provides clients with an exciting opportunity to participate in the potential growth of four of the UK’s leading banking stocks – from a ‘Strike Date’ of 27 November 2008 - with the peace of mind of 100% capital protection at maturity. Moreover, participation in the Plan via a SIPP or ISA could make this a tax-efficient investment. The full investment term is six years but the Plan has the potential for early maturity at the end of each of the first four years, paying a fixed payment equivalent to 11% p.a. (not compounded). The Cater Allen Selected UK Banking Plan 2 will only be available for a limited period so if advisers would like to know more then they should contact us at www.caterallen.co.uk.”
For more information on Paradigm Group and the Cater Allen Selected UK Banking Plan 2, please visit: www.paradigmgroup.eu or www.paradigmmortgages.com
For more information on Cater Allen’s Structured Products, please visit: www.caterallenstructuredproducts.co.uk
