Meteor FTSE/STOXX Annual Step Down to 65 Kick Out Plan – July 2024 – CG8679

Key info

  • Counterparty
    Citigroup
  • Taxation
    Capital Gains
  • Maximum Term
    6 years
  • Minimum investment
    £5,000
  • Potential Return
    7.75% p.a.
  • Moneyworld Fee
    0.5%

Overview

The Meteor FTSE/STOXX Annual Step Down to 65 Kick Out Plan is a maximum  six year three week investment offering a potential gross return of 7.75% for each year the plan runs,  subject to the performance of the FTSE 100 and EURO STOXX 50 Indices.

The plan starts on the Start Date. On a Measurement Date, if the levels of the Indices are at or above a defined percentage of their respective Start  Levels, the plan will end and pay Growth equal to 7.75% of the money invested for every year the plan has been in force. This is called a Kick Out and  the barrier levels are called the Kick Out Barriers. The first date this can happen is 2 years after the plan starts.

If the plan reaches the End Date, the Indices will be measured for the last time. If the End Levels of the Indices are at or above 65% of their respective  Start Levels, the plan will pay Growth equal to 46.50% of the money invested, otherwise, no Growth will be achieved.

Customers will get all their invested money back on a Kick Out; or, at the End Date if the End Levels of the Indices are at or above 65% of their  respective Start Levels. This barrier level is called the Loss Barrier.

If one or more of the End Levels of the Indices are below 65% of their respective Start Levels, customers will lose money proportional to the fall in the worst performing Index.

The Counterparty to this plan is the Counterparty to this plan is Citigroup Global Markets Limited in its capacity as guarantor to the issuer of the financial contracts, Citigroup Global Markets Funding Luxembourg S.C.A. If the Counterparty’s ability to pay its financial obligations deteriorates  significantly, customers’ money, regardless of how  the plan is performing at the time, will be at risk of not being paid back in full.  Customers will not  be entitled to compensation from the Financial Services  Compensation Scheme (FSCS) in this event.

It is Meteor’s understanding that any investment return from a direct investment by  individuals or Trusts into this Plan is expected to be subject to Capital Gains Tax.

Important dates

  • Closing date
    24 July 2024
  • ISA Transfer Closing date
    10 July 2024

More information

English law governed notes

Citigroup Global Markets Limited (http://www.citigroup.com/).  The product issuer is Citigroup Global Markets Funding Luxembourg S.C.A. with a guarantee by Citigroup Global Markets  Limited.

The product is designed to provide a return in the form of a cash payment on  termination of the product. The timing and amount of this payment will depend on the  performance of the underlyings. The product has a fixed term and will terminate on the maturity date, unless terminated early. The payment at maturity will not exceed GBP  1,465.00. If, at maturity, the final reference level of the worst performing underlying has fallen below 65.00% of its initial reference level, the product may return less than the  product notional amount or even zero.

Early termination following an autocall: The product will terminate prior to the  maturity date if, on any autocall observation date, the reference level of the worst  performing underlying is at or above the relevant autocall barrier level. On any such  early termination, you will on the immediately following autocall payment date receive  a cash payment equal to the applicable autocall payment. The relevant dates, autocall  barrier levels and autocall payments are shown in the table(s) in the key information document.

Termination on the maturity date: If the product has not terminated early, on the  maturity date you will receive:

1. if the final reference level of the worst performing underlying is at or above 65.00%  of its initial reference level, a cash payment equal to GBP 1,465.00;

2. if the final reference level of the worst performing underlying  is below 65.00% of its initial reference level, a cash payment  directly linked to the performance of the worst performing  underlying. The cash payment will equal (i) the product notional  amount multiplied by (ii) (A) the final reference level of the worst performing underlying divided by (B) its initial reference level.

Investors should note that the payments described above are  based on the expected value of the preference shares. Therefore  any return you may receive on the product depends directly on  the value of the preference shares. As such, your return is only  indirectly dependent on the underlyings.

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, as applicable, early. These  events are specified in the product terms and principally relate to  the product and the issuer. The preference shares in turn contain  provisions allowing the preference shares to be adjusted or  terminated early in the case of certain exceptional events, in  particular relating to the underlyings. Any such adjustments or  early termination are likely to affect the amount and timing of  return you receive under the product, meaning the return (if any) that 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.

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 and/or capital growth, expect the movement  in the underlyings to perform in a way that generates a positive return. They have a long investment horizon and understand that the product may terminate early;

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 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 5 out of 7 to achieve potential returns,  which reflects a medium-high 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

Print and complete our Appropriateness Assessment Form

Please read about ID Verification & Payment Details

2

Print and complete the application form

3

Send your documents to admin@moneyworld.com or post 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.

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

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