Arcus 6Y UK Monthly Fixed Income Plan – MS21

Key info

  • Counterparty
    Morgan Stanley
  • Taxation
    Income
  • Maximum Term
    6 years
  • Minimum investment
    £3,000
  • Fixed Income
    0.47% per month
  • Moneyworld Fee
    0.5%

Overview

The Arcus 6Y UK Monthly Fixed Income Plan is a 6 year investment which offers monthly income of 0.47%.

Income

0.47% of your Amount Invested every month (a total of 5.64% of your Amount  Invested a year).

What could you receive when the plan matures?

Whether you are repaid your Amount Invested in full at maturity will depend on the  Final Level of the FTSE 100. On the Final Maturity Date, the closing level of the FTSE  100 is recorded (the ‘Final Level’).

–  If the Final Level of the FTSE 100 is at or above 65% of its Start Level, you will be  repaid your Amount Invested in full.

–  If the Final Level of the FTSE 100 is below 65% of its Start Level (meaning it has  fallen more than 35% since the start of the Plan), the repayment of your Amount  Invested will be reduced by 1% for every 1% fall in the FTSE 100

Morgan Stanley B.V., guaranteed by Morgan Stanley. If the Issuer becomes insolvent,  you could lose a significant proportion of the Amount Invested and any income due,  regardless of how the FTSE 100 performs.

Important dates

  • Closing date
    6 September 2024
  • ISA Transfer Closing date
    23 August 2024

More information

English law governed notes

Morgan Stanley & Co. International plc

The product is designed to provide a return in the form of (1) regular fixed interest payments and (2) a cash payment on the maturity date. The amount of this payment will depend on the performance of the underlying. The product has a fixed term and will terminate on the maturity date. If, at maturity, the final reference level of the underlying has fallen below the barrier level, the product may return less than the product notional amount or even zero.

Interest: On each interest payment date you will receive an interest payment of GBP 4.70. The interest payments are not linked to the performance of the underlying. The relevant dates are shown in the table(s) in the key information document.

Termination on the maturity date: On termination of the product on the maturity date you will receive:

1. if the final reference level is at or above the barrier level, a cash payment equal to GBP 1,000.00; or

2. if the final reference level is below the barrier level, a cash payment directly linked to the performance of the underlying. The cash payment will equal (i) the product notional amount multiplied by (ii) (A) the final reference level divided by (B) the strike level.

Under the product terms, certain dates specified above and below will be adjusted if the respective date is either not a business day or not a trading day (as applicable). Any adjustments may affect the return, if any, you receive.

The product terms also provide that if certain exceptional events occur (1) adjustments may be made to the product and/or (2) the issuer may terminate the product early. These events are specified in the product terms and principally relate to the underlying, the product and the issuer. The return (if any) you receive on such early termination is likely to be different from the scenarios described above and may be less than the amount you invested.

When purchasing this product during its lifetime, the purchase price may include accrued interest on a pro rata basis.

You do not have any entitlement to a dividend from the underlying and you have no right to any further entitlement resulting from the underlying (e.g., voting rights).

The product is intended to be offered to retail investors who fulfil all of the criteria below:

1. they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, either independently or through professional advice, and they may have experience of investing in and/or holding a number of similar products providing a similar market exposure;

2. they seek income, expect the movement in the underlying to perform in a way that generates a positive return. They have a long investment horizon;

3. they are able to bear a total loss of their initial investment, consistent with the redemption profile of the product at maturity (market risk);

4. they accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product irrespective of the redemption profile of the product (credit risk);

5. they are willing to accept a level of risk of 3 out of 7 to achieve potential returns, which reflects a medium-low risk (as shown in the summary risk indicator in the key information document which takes into account both market risk and credit risk).

How do i invest?

1

Online Applications

Click Apply Online and follow the onscreen instructions (this option is not available for ISA Transfers)

2

Email Applications – Print and complete our Appropriateness Assessment Form & Application Form and email this to admin@moneyworld.com

Please read about ID Verification & Payment Details

3

Postal Applications – Print and complete our Appropriateness Assessment Form & Application Form and post these along with any cheque’s to;

Moneyworld, 34 High Street, High Wycombe, Bucks, HP11 2AG.

What are the risks?

This is a list of the general risks associated with investing in structured investment products, please read the plan brochure and key information document for your chosen product to fully understand the risks.

Market Risk:  In the event of a global economic recession this may result in financial markets weakening significantly. Political or climatic events can also cause disruption to the markets. Economic policies, tax rates or interest rates are subject to change and can influence the performance of the  Underlying Asset.

Early Redemption Risk:  The actual risk can vary significantly. If you cash in at an early stage you may get less Initial Capital back. You may not be able to sell your Plan easily or have to sell at a price that will impact how much return you get back.

Inflation Risk:  The value of your investment and any returns you may qualify for are not linked to inflation. If inflation is high over the term of the  Plan, the real value of the Plan may decrease thus affecting the real value of any returns you may receive.

Counterparty Risk:  By investing in this Plan you take a possible credit risk with the Counterparty. The Counterparty will be responsible for the payment of any return of capital and income payments due from the Investment. In the event of bankruptcy or payment default by the Counterparty you may be exposed to partial or total loss of capital and you would not be entitled to compensation from the Financial Services Compensation Scheme (FSCS).

Liquidity Risk:  The Issuer of the Securities aims to provide but cannot guarantee a secondary market for the Securities during the investment term.  However, certain market circumstances may have a negative impact on the liquidity of the Securities and result in the partial or total loss of your  initial capital invested.

Structured investment products FAQs

Structured Products are designed to be held to the end of the fixed term, it is possible to cash in the plan early however you could get back less than you originally invested.

Your application should be sent to us and not the Structured product provider, forms can be returned to admin@moneyworld.com or by post to – Moneyworld, 34 High Street, High Wycombe, Bucks, HP11 2AG.  The application should arrive with us before the advertised closing date for your chosen plan.

The payment can be made by bank transfer direct to the plan manager or by cheque, details of where to send the funds or who the cheque should be made payable to are usually included on the application form for your chosen plan.  If you’re still unsure then get in touch with us and we’ll provide details.

The company that you invest with will issue a cancellation notice once they have received and processed your application. This will give you 14 days in which to cancel the application if you decide not to proceed.

However if you cancel the plan after it has started it is possible that you will receive back less than your original investment, irrespective of whether you cancel within the 14 day period or not.

When the plan ends you will be contacted by the company that holds your investment and will usually be given the following options;

– Re-invest into a new product with the same company if they have one available at the time

– Request that they return the proceeds in full to you (any ISA funds returned will lose their ISA status)

– Re-invest part of the money into a new plan and encash the rest

– If the plan is held as an ISA you also have the option of transferring the funds to another company to retain the ISA status

There are a number of websites available that provide historical index levels, links to some of these are provided below;

Yahoo Finance
Investing.com
Bloomberg

If you require historical information for previous issues of the plan you are investing in then this can generally be found on the website of the company that administers the plan.

The fee can be paid direct to us or by specifying on the application form that the fee is to be deducted from your investment.  If you prefer to pay us directly you can do this by cheque or bank transfer.  If posting an application please either enclose a cheque payable to Moneyworld or indicate that the fee is to be paid directly and we will provide account details once we have processed your application.

If you’re emailing your form and haven’t indicated that the fee is to be deducted from the investment, we’ll assume you’re paying  by bank transfer and will provide account details when we acknoweldge receipt of your application.

A Structured Product is a fixed term product which usually runs for between 2-10 years. The return of your original capital and any income/growth payments are usually dependant on the performance of either a basket of shares or more commonly a specific index such as the FTSE 100.

There are two types of Structured Products available:

♦ Investment based
♦ Deposit based

Investment based: At the end of the term, you receive the product return from the company that holds the investment plus a return of capital, providing certain criteria has been met.

The product is issued in association with a third party, known as a ‘counterparty’ who provide the returns and the guarantees. If this third party goes bankrupt, you could lose some or all of your money. This type of product does not benefit from Financial Services Compensation Scheme protection

Deposit based: Deposit based plans are similar to Structured Investment Products, however UK investors may benefit from the Financial Services Compensation Scheme’s (FSCS) deposit insurance scheme, subject to certain limits.

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Have a query?

Get in touch with the team.
Call us on 01494 443806
We’re here 9.00am - 5.30pm
Monday to Friday

Sign up for structured product updates

Have a query?

Get in touch with the team.
Call us on 01494 443806
We’re here 9.00am - 5.30pm
Monday to Friday