Arc creates watershed with H2O plan

Arc Capital & Income has unveiled the six-year Arc H2O Plan, its first utility-based investment linked to water. The plan is based on the S&P Global Water index, offering 1.25 times the rise in the index with no cap. Return is calculated according to the monthly average of the index over the last six months, which constitutes seven observations. Investors’ capital is at risk if the monthly average is below 60% of its initial level, in which case capital is lost 1:1.

The underlying S&P Global Water index comprises 50 companies, 25 from the water equipment, instruments and materials sector, and 25 from the water utilities & infrastructure sector. Priority and weighting is given to entities whose business is primarily involved in the water industry, rather than those companies where water represents a portion of its sales. The plan requires a minimum investment of £3,600 and is available through direct investment, stocks and shares Isa and Isa transfers