The Augere Dual Index Super Defensive Kick Out Plan is a maximum 7 year plan that offers potential growth of 8% for each year the plan runs, subject to the performance of the FTSE 100 and the S&P 500. The plan can mature early (Kick-Out) from the end of year 1 onwards.
A maximum seven year investment
FTSE 100 Index and S&P 500 (the ‘Indices’)
Issued by Credit Suisse AG (A rated by S&P, A1 Moody’s and A by Fitch, December 2018).
Potential Returns from this investment
This investment could accumulate 8% growth for each year it is held. Any potential growth payment is dependent upon a kick out event occurring. A kick out event is an opportunity for this investment to end early and with this investment it is possible from the end of year 1 and every year thereafter. A kick out event will occur if at market close on any kick out observation date the underlying indices both close at or above the kick out levels described here and on page 3 of the brochure.
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 65% of its starting level, you will receive your initial invested capital plus a 56% growth payment.
> If the worst performing index is below 65% of its starting level but has not fallen below 60% of its starting level, you will receive your initial invested capital but no growth payment.
> If either 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 by 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 a cash payment on termination of the product. The timing and amount of this payment will depend on the change in value of the preference shares, which in turn will depend on the performance of the underlyings. The product has a fixed term and will terminate on the maturity date, unless terminated early. The payment at maturity will not exceed GBP 1.56. If, at maturity, the worst performing underlying has fallen below 60.00% of its initial reference 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 the relevant autocall barrier level. On any such early termination, you will on the immediately following autocall payment date receive a cash payment equal to the applicable autocall payment. The relevant dates, autocall barrier levels and autocall payments are shown in the table(s) on the key information document.
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 65.00% of its initial reference level, a cash payment equal to GBP 1.56;
2. if the final reference level of the worst performing underlying is at or above 60.00% of its initial reference level and below 65.00% of its initial reference level, a cash payment equal to GBP 1.00; or
3. if the final reference level of the worst performing underlying is below 60.00% of its initial reference 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 initial reference level.
Investors should note that the payments described above are based on the expected value of the preference shares. Therefore any return you may receive on the product depends directly on the value of the preference shares. As such, your return is only indirectly dependent on the underlyings.
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, as applicable, early. These events are specified in the product terms and principally relate to the product and the product issuer. The preference shares in turn contain provisions allowing the preference shares to be adjusted or terminated early in the case of certain exceptional events, in particular relating to the underlyings. Any such adjustments or early termination are likely to affect the amount and timing of return you receive under the product, meaning the return (if any) that 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.
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 capital growth, 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 below 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
> 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 Super Defensive Kick Out 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 will expect the FTSE 100 and S&P 500 to rise causing the investment to kick out. In the event their market view is wrong, investors will desire some kick out levels to be lower than the initial starting levels to increase the likelihood of receiving a positive return
♦ Investors will be happy to accept a capped potential return of 8% per annum. Investors will realise that this potential return may be worse than investing directly in the constituents of the FTSE 100 and S&P 500
♦ Investors will be willing and able to have their capital invested for 7 years
♦ Investors will be able to bear a 100% capital loss
♦ Investors will have a welldiversified portfolio. This investment will be one component of this portfolio
♦ Investors will be happy with the long-term health of Credit Suisse AG
♦ 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 what factors drive the underlying indices, in this case the FTSE 100 and S&P 500 and how movement in the underlying 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 be willing and able to take risk. They will understand that any potential return is contingent upon the performance of the FTSE 100 and S&P 500 on the relevant observation dates
♦ Investors will realise that it is not guaranteed that this investment will return a growth payment.