Product Summary

You could lose some or all of your investment

A contract for difference ("CFD") discretionary trading programme combined with optional capital protection provided by one or more corporate bonds issued by UK high street banks.

Each Managed Account contains an allocation to a CFD trading programme and the option of an allocation to one or more corporate bonds issued by UK high street banks. The combination of these two investments provides the investor with the prospect of highly-geared returns on short-term movements in a small number of the most liquid FTSE 100 stocks, together with the protection afforded by an allocation to one or more highly-rated UK bank bonds maturing in around 5 or 6 years time at which point the bonds should repay an amount equivalent to some or all of the investor's subscription to the Managed Accounts, including the Capital Protection Advisory Fee.

A CFD is a geared equity derivative that allows investors to speculate on share price movements, taking long or short positions, without the need for ownership of the underlying shares. Unlike futures contracts, CFDs have no fixed expiry date, standardised contract or contract size. The CFD portfolio is normally leveraged in the region of 3x to 5x when compared with the movement in the underlying stocks.  CFDs are leveraged financial instruments and therefore any losses as well as profits will be magnified. In adverse market conditions, the entirety of an investor's capital allocated to CFDs may be lost.

A corporate bond is a loan to a company (in this case a bank); it is legally committed to paying the loan back. It is possible that the bank could fail or is unable to pay pack the loan. If the bank collapses you may lose some or all of your money. The capital protection is achieved by purchasing one or more corporate bonds issued by UK high street banks with a majority UK government shareholding (i.e. HBOS, RBS, Lloyds TSB, NatWest). The bonds mature in around five to six years time at which point they should return to the investor some or all of his/her initial investment, depending on the level of capital protection selected. The bonds have a minimum rating of A by Standard & Poors Ltd - a leading independent credit rating agency. Companies are rated from AAA (Most secure/best) to D (Most risky/worst). Based on a single A rating, Curzon Capital believes that these banks are very likely to repay their debts when they mature, but this is not guaranteed.

Key Features

The accounts are managed on a discretionary basis by a specialist UK stock broker ("the Manager").

Assuming the current annualised rate of return of 50% on the CFD trading portfolio, investors could double their money in less than four years. The capital protection feature covers 80-100% (depending on the level of protection chosen) of the initial investment including the Subscription Fee.

Investors are able to choose the level of capital protection they wish: 80, 90 or 100%. This means that sufficient bonds are purchased so that when they mature they should repay some or all of the initial money invested depending on the level of capital protection selected. The balance of the investment is allocated to the CFD Managed Account

There are no annual management charges and no performance fee. The Manager's income is derived from the brokerage commissions it receives on trading the CFD positions (typically 0.3% on each trade).

There is good liquidity as the investor has direct access to the underlying assets and can therefore instruct the Manager to close out all the CFD positions, sell the bonds and return the cash balance immediately.

Investment in the Managed Accounts can be made directly, as well as through a SIPP/SSAS or corporate body.

The Manager is authorised and regulated by the FSA and is obliged to comply with the COBS rules of the FSA. Investments in the Managed Accounts are covered by the Financial Services Compensation Scheme.

The corporate bonds are held in a nominee safe custody account with the Manager for and on behalf of each investor. CFDs and cash are held at Saxo Bank for the benefit of the underlying investors. Saxo Bank is a Danish bank which is included in the Danish Deposit Guarantee Scheme.

Profits made on trading CFDs are taxed as capital gains (i.e. CGT at 18%).

Minimum investment: For an investment with no capital protection, the minimum is £25,000. For an investment with capital protection, the minimum is £100,000.

Where appropriate a Capital Protection Advisory Fee of 2% is payable. The Manager may also share part of its brokerage commissions with Curzon and the Introducer.

For further information and a copy of the CFD Managed Account with Optional Capital Protection brochure, please contact please contact Charlie Goldsmith or Patrick McMeekin  (020 7355 2427).

This product is a member of the SimplyBiz Capital Rewards programme. For further information visit www.capitalreward.co.uk