Morgan Stanley has launched a third tranche of its FTSE Income and the FTSE Bonus Growth structured products. Both plans have a six-year investment term and are open for subscription until 11 October 2010.

The FTSE Income Plan 3 offers investors income of 6.75 per cent a year, regardless of any movement in the FTSE 100 Index. In addition, the plan provides some protection from a falling market, repaying the initial investment in full at maturity as long as the FTSE 100 Index level remains above 50 per cent of its initial level throughout the term.  An early investment discount on the subscription price is also available, equivalent to 0.5 per cent interest per annum, Morgan Stanley said.

The FTSE Bonus Growth Plan 3 offers 10 per cent per annum return, paid on the first annual anniversary that the FTSE 100 Index is above its level on the plan start date. Investors can choose to lock in their returns or they may exit the plan at this point and receive the return of their initial investment plus the fixed return. Once the bonus feature has been activated the investor does not receive any further returns and capital is protected. The plan also offers protection against adverse movements in the index in the form of 50 per cent capital protection.

The firm says this is slightly lower risk than other such protection models as the index level is only observed at maturity rather than at any time during the plan.