The Augere Dual Index Quarterly Conditional Income Plan is a maximum 8 year plan that offers potential quarterly income of 1.875%, subject to the performance of the FTSE 100 and the Russell 2000 Indices. The plan can mature early (Kick-Out) from the end of year 2 onwards.
A maximum eight year investment
FTSE 100 Index and S&P 500 (the ‘Indices’)
Issued by Credit Suisse AG (A rated by S&P, A1 by Moody’s and A by Fitch, December 2018).
Potential Returns from this investment
This investment could pay a quarterly income of 1.875% of your initial investment. This will only be received if the underlying indices, in this case the FTSE 100 and S&P 500, close at or above 75% of their starting levels on the quarterly observation dates. If this condition is not met, you will not receive an income for that quarter.
This investment could end early from the end of year 2 and quarterly thereafter. This will occur if the worst performing index closes at or above 105% of its starting level on the kick out observation dates.
What happens at maturity
If your investment has not kicked out before maturity, there are three possible outcomes at market close on the maturity date:
> If the worst performing index is at or above 75% of its starting level, you will receive your initial invested capital plus a final income payment of 1.875%.
> If the worst performing index is below 75% of its starting level but has not fallen below 60% of its starting level, you will receive your initial invested capital but no final income payment
> If the worst performing index has fallen below 60% of its starting level, you will lose a proportion of your capital equal to the percentage fall in the worst performing index. As an example, if the worst performing index has fallen 70% from its starting level – you will lose 70% of your initial capital.
How can I hold this?
Direct, Stocks & Shares ISA (existing,new or transfer in), SIPPs, SSAS,Corporate, Charities and Trusts
Other Key Information
English law governed notes
Credit Suisse International (www.credit-suisse.com/derivatives). The product issuer is Credit Suisse AG, acting through its London Branch.
The product is designed to provide a return in the form of (1) conditional interest payments and (2) a cash payment on termination of the product. The timing and amount of these payments will depend on the performance of the underlyings. The product has a fixed term and will terminate on the maturity date, unless terminated early. If, at maturity, the worst performing underlying has fallen below its barrier 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 its autocall barrier level. On any such early termination, you will on the immediately following autocall payment date receive, in addition to any final interest payment, a cash payment equal to the autocall payment of GBP 1. No interest payments will be made on any date after such autocall payment date. The relevant dates are shown in the Key Information Document.
Interest: If the product has not terminated early, on each interest payment date you will receive an interest payment of GBP 0.01875 if the reference level of the worst performing underlying is at or above its 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.
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 its barrier level, a cash payment equal to GBP 1; or
2. if the final reference level of the worst performing underlying is below its barrier 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 strike level.
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 underlyings, 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 interest on a pro rata basis.
The product is intended to be offered to retail investors who fulfil all of the criteria below:
♦ they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, with experience of investing in and/or holding a number of similar products providing a similar market exposure, either independently or through professional advice;
♦ they seek income, 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;
♦ they accept the risk that the issuer could fail to pay or perform its obligations under the product and they are able to bear a total loss of their investment; and
♦ they 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.
The product is not intended to be offered to retail clients who do not fulfil these criteria. Please ensure you have read and understood the important documents contained on this page before investing.
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: 13 February 2019
ISA Transfer closing date: 01 February 2019
> ISA Transfer Authority Form (ISA Application above must also be completed)
> Appropriateness Questionnaire
(Please complete and return with your application form)
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 Augere Dual Index Quarterly Conditional Income Plan right for me?
The kind of investor that this product has been designed for is as follows:
♦ Type of clients: retail investors who have the ability to make an informed decision through sufficient knowledge and understanding of the product and its specific risks and rewards, with experience of investing in and/or holding a number of similar products providing a similar market exposure, either independently or with professional advice
♦ Investors who are seeking potential income on a quarterly basis
♦ Investors will be willing and able to have their capital invested for 8 years
♦ Investors will expect the FTSE 100 and S&P 500 to close at or above 75% of their starting levels on the quarterly observation dates
♦ Investors will be able to bear a 100% capital loss
♦ Investors, with or without the aid of a regulated financial adviser, will ensure the product is suitable.
♦ They will also have knowledge and experience in:
– Direct investment in structured and other capital at risk products
– Understanding of what factors drive the underlying indices, in this case the FTSE 100 and S&P 500, and how movement in these indices impacts the value of the investment
– Understanding the benefits and consequences of the barrier feature of this investment
– Understanding counterparty bank risk, in this case the risk that Credit Suisse AG defaults at any point during the investment term, and how this would impact any potential return from this investment
♦ Investors will have a well-diversified portfolio. This investment will be one component of this portfolio
♦ Investors will be happy with the long-term health of Credit Suisse AG. They will not expect them to default at any point during the investment term
♦ Investors will realise it is not guaranteed that this investment will return an income.