The Arcus 5Y UK Fixed Income Plan is a 5 year investment which offers quarterly income of 1.3875%, with a potential bonus of 1% at maturity, dependent on the performance of the FTSE 100 Index.
The quarterly income
You will receive an income payment every three months (quarterly) during the term. Each income payment will equal 1.3875% of your Amount Invested (a total of 5.55% a year).
A final conditional income payment
On the final income date only, you have an opportunity to earn extra income. You will receive an additional 1% of your Amount Invested on the final income date if the FTSE 100 closes at or above 100% of its Start Level on the Final Maturity Date (meaning a total final income payment of 2.3875%). If the FTSE 100 closes below 100% of its Start Level on the Final Maturity Date, there is no additional payment and your final income payment will be 1.3875%.
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 60% of its Start Level, you will be repaid your Amount Invested in full.
♦ If the Final Level of the FTSE 100 is below 60% of its Start Level (meaning it has fallen more than 40% 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 (please see page 5 for some examples of how much you could lose in different scenarios).
Crédit Agricole Corporate and Investment Bank (“Crédit Agricole CIB”) is the Issuer, meaning it is responsible for issuing the investment (known as Securities) which the Plan will purchase in order to provide the returns of the Plan to you. If the Issuer becomes insolvent, you could lose a significant amount of your Amount Invested, regardless of the performance of the FTSE 100.
Other Key Information
The product is in the form of a debt instrument, governed by English law.
Crédit Agricole CIB
To provide interest payment(s), in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest.
Interest
– Interest Rate: 1.3875% on each of the Interest Payment Dates
– Interest Amount on each Interest Payment Date: You will receive the Nominal Amount multiplied by the Interest Rate.
Redemption on the Maturity Date:
Redemption Amount: You will receive one of the following:
If a Barrier Event has NOT occurred:
– If the Final Underlying Performance is greater than or equal to 0%, you will receive, in addition to the Nominal Amount, the Bonus Amount.
– Otherwise, you will receive the Nominal Amount.
Otherwise, you will receive the Nominal Amount.Otherwise, you will receive the Nominal Amount diminished by an amount equal to the Final Performance multiplied by the Nominal Amount. The amount paid in such case will be less than the Nominal Amount and you may lose some or all of your capital.
Early redemption and adjustments
The terms of the product provide that if certain defined events, in addition to those described above, occur (principally but not exclusively in relation to any Underlying, or the Manufacturer of the product (which may include the discontinuation of the Manufacturer’s ability to carry out the necessary hedging transactions)), adjustments may be made to the terms of the product to account for the relevant event or the product may be early redeemed. The amount paid on any early redemption may be less than the amount originally invested.
This product is intended for clients who:
• have significant knowledge and experience in products such as the one described in the key information document
• are willing and able to bear a potentially total loss
• have a risk tolerance consistent with the summary risk indicator in the key information document
• are expressing a view on the underlying consistent with the conditions for a positive outcome (as stated in the product description)
• have a horizon consistent with the term of this product
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?
Application Fee
Our fee is just 0.5%. This can be deducted from the investment or paid directly to us.
Important Plan Dates
Closing Date: 18 April 2023
Important Documents
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Is the Arcus 5Y UK Fixed Income Plan 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 investments (such as 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 on the potential growth of the FTSE 100 in the five-year term.
♦ You are looking for income which is higher than you would achieve from a risk-free investment (such as a savings account).
♦ You are looking for income is higher than you would achieve from a risk-free investment (such as a savings account).
♦ You accept that in order to achieve a higher income, there is a risk that you may get back less than your Amount Invested at maturity.
♦ You are able to bear significant losses if the FTSE 100 has fallen by more than 40% at maturity.
♦ You understand how the Plan works, in particular that income and any repayment of your Amount Invested at maturity are not covered by the Financial Services Compensation Plan (‘FSCS’) and depend on Crédit Agricole CIB 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.