The Causeway Securities US Range Accrual Annual Income Deposit Plan is a 6 year plan that offers potential income of 10.05% annually, subject to the performance of the underlying index.
An income payment of 10.05% is paid annually over the 6 year term if the value of the Underlying Asset is within the Accrual Range of 75% – 120% on the relevant annual Observation Date.
If the value of the Underlying Asset falls outside of this range no income will be paid for that period. As an example, if the S&P 500 Index closed at 4,360 on the Initial Valuation Date then the Index would have to close between 3,270 and 5,232 on the Observation Date to qualify for the income payment.
The Plan does not have the ability to mature early at any time.
Your Initial Capital will be returned in full at Maturity, regardless of the performance of the Underlying Asset. However, the risk to your money has not been eliminated as the repayment of the amount you place in the Plan is dependent on the Deposit Taker being able to pay the amounts due from the Deposit. This is known as Deposit Taker risk.
The Deposit Taker for this product is Barclays Bank plc. The Deposit Plan is eligible for the Financial Services Compensation Scheme (FSCS) protection.
Subject to a minimum investment of £10,000, the Plan is available to: Direct Investment; ISA/ISA Transfers; Pensions; Companies; Trusts; Charities.
It is Causeway Securities understanding of current legislation and known HMRC practice that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Income Tax. Investors should obtain their own tax advice.
Other Key Information
English law governed deposit
Barclays Bank PLC (www.barx-is.com). The PRIIP manufacturer is also the product issuer. Call +44 (0) 20 7116 9000 for more information.
The product is designed to provide a return in the form of (1) conditional interest payments and (2) a cash payment on the maturity date. The product has a fixed term and will terminate on the maturity date.
Interest: On each interest payment date you will receive an interest payment calculated by multiplying the product notional amount by the interest rate of 10.05% per annum if the reference level is at or above the lower interest barrier level and at or below the upper interest barrier level on the immediately preceding interest observation date. If this condition is not met, you will receive no interest payment on such interest payment date. 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 GBP 1.
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 product issuer may terminate the product early. These events are specified in the product terms and principally relate to the underlying, the product and the product 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 coupon on a pro rata basis.
For display purposes numbers within this document have been cut off at 4 decimal places.
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 full protection of the product notional amount, subject to the issuer’s ability to pay, expect the movement in the underlying to perform in a way that generates a favourable return, have an investment horizon of the recommended holding period specified in the key information document and understand that the product may terminate early;
3. they are not able to bear any 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 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).
The product is not intended to be offered to retail clients who do not fulfil these criteria.
To gain a full understanding of this Plan it is important that you read the brochure 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 and conditions 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: 12 January 2024
ISA Transfer Closing date: 29 December 2023
Is the Causeway Securities US Range Accrual Annual Income Deposit Plan right for me?
This Plan may be right for you if:
♦ You have received advice from your investment advisor prior to investing in this Plan or you have the necessary investment experience to make this investment on a non advised basis.
♦ You have read the Brochure and understand how this investment works.
♦ You have some knowledge or experience of similar investments, the financial markets and the Underlying Assets which allows you to understand the risks associated with this Deposit Plan.
♦ You are seeking the opportunity for higher returns than current cash rates, at the time this Deposit Plan is launched.
♦ You understand that the return of your investment is linked to the performance of the Underlying Asset.
♦ You understand how the deposit plan works
♦ You understand the risk to capital in the event of a Deposit Taker default
♦ You are willing to invest for a period of up to 6 years.
This investment may not be right for you if:
♦ You have received no advice in relation to this Plan and you do not have sufficient knowledge or experience which would allow you to understand this investment.
♦ You have read the Brochure and do not understand how the investment works.
♦ You have not read the warnings or understand the risk disclosures in the brochure
♦ You are seeking regular income from this investment during the investment term.
♦ You are not comfortable that the return of your investment is linked to the performance of the Underlying Asset.
♦ You do not understand how the deposit plan works
♦ You are not comfortable that your investment may be at risk if the Deposit Taker becomes insolvent
♦ You are not willing to invest for a period of up to 6 years.