The Arcus 5Y UK Kickout Deposit Plan is a maximum 5 year investment which offers potential growth payments of 7.6% a year, dependent on the performance of the FTSE 100 Index.
The potential interest
There are several opportunities during the term of the Plan for you to receive an interest payment, depending on the performance of the UK stock market – specifically the FTSE 100 Index.
♦ There are set dates during the investment term (‘Early Maturity Dates’) where you might receive an interest payment. The first Early Maturity Date is three years after the Start Date.
♦ If the FTSE 100 closes at or above 100% of its Start Level on an Early Maturity Date, the Plan will mature early (sometimes known as a ‘kick out’), repaying your Amount Invested plus an interest payment equal to 7.6% (not compounded) for each year that has passed since the Start Date.
♦ If on the Final Maturity Date there has been no early maturity and the closing level of the FTSE 100 is less than 100% of its closing level on the Start Date (its ‘Start Level’), you will receive no interest payment.
The repayment of your Deposit
If the Plan matures early on one of the Early Maturity Dates, you will be repaid your Amount Invested in full at this time.
If the Plan does not mature early, you will be repaid your Amount Invested in full after the Final Maturity Date, even if the FTSE 100 has fallen.
Societe Generale, London Branch is the ‘Deposit Taker’, meaning it is responsible for providing the Deposit which the Plan will purchase in order to provide the returns of the Plan to you.
Other Key Information
English law governed deposit
SOCIETE GENERALE LONDON BRANCH (SGLB)
This product is designed to provide a return when the product is redeemed (either at maturity or when redeemed early). It is possible for the product to be automatically redeemed early based on pre-defined conditions. If the product is not redeemed early, both the return and the capital redemption amount will be linked to the performance of the Reference Underlying. The product provides full capital protection at maturity only.
Automatic Early Redemption
On any Early Redemption Observation Date, if the level of the Reference Underlying is at or above the Early Redemption Barrier, the product will be redeemed early and you will receive, on the Early Redemption Payment Date:
– 100% of the Nominal Value, plus the Early Redemption Coupon multiplied by the number of periods the product has elapsed since inception. A period corresponds to one year.
On the Maturity Date, provided that the product has not been redeemed early, you will receive a final redemption amount.
If the Final Level of the Reference Underlying is at or above the Final Barrier, you will receive:
– 100% of the Nominal Value plus the Final Coupon
– Otherwise, you will receive 100% of the Nominal Value.
– The level of the Reference Underlying corresponds to its value expressed as a percentage of its Initial Value.
– The Initial Value of the Reference Underlying is its value observed on the Initial Observation Date.
– The Final Level is the level of the Reference Underlying observed on the Final Observation Date.
– Coupons are expressed as a percentage of the Nominal Value.
– Extraordinary events may lead to changes to the product’s terms or the early termination of the product and could result in losses on your investment
The product is aimed at investors who:
– Have specific knowledge or experience of investing in similar products and in financial markets, and have the ability to understand the product and its risks and rewards.
– Seek a product offering capital growth with full capital protection and have an investment horizon in line with the recommended holding period stated in the key information document.
– Accept the risk that the deposit taker could fail to pay or perform its obligations under the product but otherwise they are not able to bear any loss of their investment, subject to the availability of any compensation under the UK Financial Services Compensation Scheme;
– Understand that the minimum reimbursement only applies at maturity and they could receive less than this amount if the product is sold beforehand.- Are willing to accept a level of risk to achieve potential returns that is consistent with the summary risk indicator shown in the key information document.
To gain a full understanding of this Plan it is important that you read the Plan Brochure and Key Information Document carefully, including the product risks and terms and conditions. If you are unsure about any aspect of this investment product, please seek financial advice to ensure the Plan suits your requirements and overall investment planning.
Moneyworld does not offer investment advice. The information in this brochure does not constitute tax, legal or investment advice. Please read our terms of business before investing
How do I invest?
Our fee is just 0.5%. This can be deducted from the investment or paid directly to us.
Important Plan Dates
Closing Date: 06 October 2023
ISA Transfer Closing Date: 22 September 2023
Is the Arcus 5Y UK Kickout Deposit right for you?
THIS PLAN MAY BE APPROPRIATE FOR YOU IF YOU AGREE TO ALL THE FOLLOWING STATEMENTS:
♦ You are comfortable with leaving your money invested for up to five years and you have access to other funds during this period for emergencies.
♦ You have at least £3,000 to invest as a lump sum.
♦ You already have a larger investment portfolio made up of different types of savings and investments (such as fixed term deposits, bonds, funds and other equity-based investments).
♦ You are able to understand the features and risks associated with this investment.
♦ You are comfortable with investing in a Plan that is linked to the FTSE 100 and have a neutral or positive outlook of how the FTSE 100 will grow in the five-year term.
♦ You are looking for interest which has potential to be higher than you would achieve from a risk-free investment (such as a savings account).
♦ You do not expect the FTSE 100 to rise by more than 36.25% over the five-year term.
♦ You are looking to receive a one-off interest payment when the Plan matures, rather than a regular income.
♦ You accept that in order to achieve a higher interest, there is a risk that you may receive no interest at all.
♦ You understand how the Plan works, in particular that the interest and any repayment of your Amount Invested at maturity depend on Societe Generale being able to meet its payment obligations.
♦ You understand that if you sell the Plan early, the amount you receive would depend on the value of the Plan on the date of sale, and could be less than the Amount Invested.
♦ You understand the personal tax implications of an investment in the Plan.
♦ You accept the risks associated with this investment.
IF YOU CANNOT AGREE TO ALL OF THE STATEMENTS ABOVE, THIS PLAN MAY NOT BE APPROPRIATE FOR YOU.