The Investec FTSE 100 Defensive Kick Out Deposit Plan is designed to repay your initial deposit and deliver a return linked to the performance of the FTSE 100 over the 6 year term.
There is also potential for the Plan to mature early (Kick-Out), returning your initial deposit plus a return depending on the performance of the FTSE 100.
♦ If at the end of years 3, 4, 5 or 6 the FTSE 100 is higher than a specified percentage of its starting level, the Plan will mature returning your initial deposit plus a fixed payment equal to 4.5% per annum not compounded.
♦ If no Kick-Out occurs and the FTSE 100 is equal to or lower than 85% of its starting level after 6 years, you will receive back your initial deposit with no return.
For further details on how Investec calculate returns, which includes the use of averaging, please see ‘How does the Plan work?’ on page 6 of the brochure.
Other Key Information
The FTSE 100 Defensive Kick Out Plan is a structured deposit. Your deposit will be held by Investec Bank plc
Investec Bank plc
This product is denominated in GBP and is designed to return your initial investment as well as delivering a return linked to the performance of the FTSE 100 (the “Underlying”) over the term of 6 years. This product also has the potential to mature early (“Kick Out”), returning your initial investment plus a return depending on the performance of the Underlying.
Early Maturity (Kick Out)
This product will “Kick Out” at the end of any year from the 3rd year onwards, returning your initial investment as well as 4.5% per annum (not compounded), provided that the Underlying is above a reducing percentage of its starting level. These percentages are 100%, 95%, 90%.
Maturity After 6 years
If no Kick Out occurs and the product runs to the end of the recommended holding period, your return will be determined accordingly:
♦ If the Underlying is above 85% of its starting level, the product will return your initial investment plus 27%
♦ If the Underlying is equal to or below 85% of its starting level, the product will return your initial investment with no additional return
This product has been designed for investors who are looking to potentially achieve a high level of growth over a term of 6 years but can accommodate receiving their money back before the end of the term. Investors are looking for alternatives to fixed rate cash products (such as a fixed rate bond), are willing to take the risk that actual returns achieved may be lower than fixed rate cash products, but do not wish to risk losing their initial deposit.
Therefore this product is aimed at investors who have a medium-low appetite for risk. Investors will understand that the potential returns of this product are linked to the performance of the FTSE 100. Additionally, investors will have knowledge and understanding of this structured product from supporting product literature and any advice they have received, as well as an understanding of financial markets.
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
Our fee is just 0.5%. This can be deducted from the investment or paid by enclosing a cheque to Moneyworld.
Important Plan Dates
Closing Date: 16 January 2019
ISA Transfer closing date: 21 December 2018
Other application forms
How do I invest?
Please print and complete your application form together with our appropriateness questionnaire. Please send your completed forms to us at Moneyworld, 34 High Street, High Wycombe, Bucks, HP11 2AG.
Is the Investec FTSE 100 Defensive Kick Out Deposit Plan right for you?
This investment may be right for you if:
♦ You want a full return of your deposit at maturity.
♦ You are looking for a plan with returns linked to the performance of stock markets.
♦ You do not need access to your money over the next 6 years.
♦ You want a tax-efficient investment using your ISA allowance or via a SIPP/SSAS.
♦ You have a minimum of £3,000 to invest.
This investment may not be right for you if:
♦ You want a regular income and dividends.
♦ You may need immediate access to your money before maturity.
♦ You cannot commit to the full 6 year Plan Term.
♦ You want a guaranteed return on your deposit.
♦ You want to add to your deposit on a regular basis.
♦ You do not want to invest in a UK onshore asset that is subject to UK tax rules.
This Plan has been designed for investors who are looking for alternatives to fixed rate cash products, such as a fixed rate bond, in order to achieve capital growth over a 6 year term but are able to accommodate receiving their money back before the end of the 6 year term.
Investors are willing to take the risk that actual returns achieved may be lower than fixed rate cash products, but do not wish to risk losing their initial deposit and therefore this Plan is aimed at investors who have a medium-low appetite for risk.
Investors will understand that the potential returns of this Plan are linked to the performance of the FTSE 100, and that the Plan can mature early.