Morgan Stanley is launching a structured product to focus on the 20 largest stocks on the FTSE 100.
The Morgan Stanley UK Giants Selector Plan 2 will deliver an average accrued return from the performance of the top performing 11 stocks over a period of six years.
Opening for investment in July 2013, the plan will use the pre-determined target of a 50 per cent increase of the FTSE 100 once the product reaches maturity.
Morgan Stanley executive director Marc Chamberlain says: “This is a ‘best of’ growth plan, providing exposure to UK large cap stocks in a defined payoff environment. It uses hindsight to automatically select the best performers.
“Investors are getting exposure to the largest companies listed on the UK stock exchange with the added benefit of some protection if markets fall.”
As the plan focuses on the largest stocks on the FTSE 100, Chase de Vere head of communications Patrick Connolly says: “You are not going to be benefiting from dividend payments which some of the stocks will produce.”