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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 wish to benefit from growth in the emerging markets,
specifically the S&P BRIC 40 Index.
• I wish to protect my initial investment if the the S&P
BRIC 40 Index falls.
• I understand that the repayment of my initial investment
when the plan matures depends on Morgan Stanley being able
to meet its financial obligations and I am comfortable with
this risk.
• I am willing to invest my capital for the full six year
term.
• 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 Capital Gains Tax annual exemption. |
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If the following statements
apply to you then an investment in this plan may not be
appropriate:
•
I expect the S&P BRIC 40 Index to appreciate very strongly
over the next six years and therefore do not want to cap my
potential returns.
•
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 credit risk of Morgan
Stanley. |
Additional Risk Factors
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Plan returns are based on the performance of the S&P BRIC
40. The index comprises securities from emerging markets and
may be more volatile than other equity indices. 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 and index levels
in between the Plan Start Date and the end of the investment
term are not taken into account when calculating the returns
(there is no averaging). Sudden index movements on these
dates will 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 S&P
BRIC 40 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 S&P BRIC 40 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 their relevant exchanges. 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 rating of the issuer.
Consequently, investors selling prior to maturity may
receive less than their 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 not
be able to meet their obligation to pay the advertised
returns or to repay investment capital 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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