The Causeway Securities 6 Year FTSE 100 Kick Out Plan is a maximum 6 year plan that offers potential growth of 4.15% for each 6 month period the plan runs, subject to the performance of the FTSE 100 Index.
This Plan combines two features. An Issuer right to “call” the Plan early at a Callable Observation Date (Semesters 2 – 9) and an automatic Kick Out feature on a Kick Out Observation Date or at Maturity (Semester 10, 11 and 12). Below describes how both features may provide a return on your investment.
Prior to the Kick-Out Observation Dates or Maturity, SG Issuer has the right to “call” the Plan early on any of the Callable Observation Dates (as set out on page 4 of the brochure).
If SG Issuer exercise this right to call the Plan, investors will receive their initial investment plus 4.15% for each Semester the Plan has been in force. For example, if SG Issuer calls the Plan on the fourth Semester, a return of 16.6% will be paid (4 x 4.15%).
If SG Issuer has not called the Plan early, the Plan has a feature which means that it can mature early on any Kick Out Observation Date. This will occur if the respective Closing Level of the Underlying Asset, on a Kick Out Observation Date, is equal to or above its respective Kick-Out Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 4.15% for each Semester that the Plan has been in existence. This is explained on page 7 of the brochure ‘Potential Investment Return explained’.
At Maturity, the Plan has a defined “Kick Out” level set at or above 100% of the Opening Level. Therefore, if the Underlying Index is at or above 100% of the Opening Level, the Plan will pay your capital back in full, together with a return of 49.8% (12 x 4.15%).
If the Final Level of the Index is at least equal to 65% of its Opening Level, you will get back the amount you invested. You will lose money if the Final Level of the Underlying Index is below 65% of its Start Level. The amount of your money that you would lose will be the percentage by which the Final Level of the Index is below its Start Level. In extreme circumstances you could lose all of your money.
Other Key Information
This product is an unsecured debt instrument governed by English law. This product tracks the value of a Preference Share issued by Mapleis which is linked to the Underlying.
Société Générale, http://kid.sgmarkets.com, Call +33(0) 969 32 08 07 for more information
This product is designed to provide a return when the product is redeemed (either at maturity or when redeemed early). It is possible for the product to be automatically redeemed early based on pre-defined conditions. The Issuer is able to terminate the product at its discretion before the final maturity date. If the product is not redeemed early, the capital redemption amount is linked to the performance of the Reference Underlying. Your capital will be fully at risk when investing in this product.
On any Early Redemption Observation Date, if the level of the Reference Underlying is at or above the Early Redemption Barrier, the product will be redeemed early and you will receive: 100% of the Nominal Value plus the Early Redemption Coupon multiplied by the number of period the product has elapsed since inception plus the performance of the Reference Underlying above the Strike multiplied by the Participation. A period corresponds to a semester.
On each Issuer Call Date, the Issuer has the right to terminate the product at its discretion. In this case, the product will be redeemed early and you will receive 100% of the Nominal Value plus the Early Redemption Coupon multiplied by the number of periods the product has elapsed since inception. A period corresponds to a semester.
On the Maturity Date, provided that the product has not been redeemed early, you will receive a final redemption amount.
– If the Final Level of the Reference Underlying is at or above the Final Barrier, you will receive: 100% of the Nominal Value plus the Final Return plus the performance of the Reference Underlying above the Strike multiplied by the Participation.
– If the Final Level of the Reference Underlying is below the Final Barrier and is at or above the Capital Barrier, you will receive: 100% of the Nominal Value.
– Otherwise, you will receive the Final Level of the Reference Underlying multiplied by the Nominal Value. In this scenario, you will suffer a partial or total loss of your invested amount.
– The level of the Reference Underlying corresponds to its value expressed as a percentage of its Initial Value.
– The Initial Value of the Reference Underlying is its value observed on the Initial Observation Date.
– The Final Level is the level of the Reference Underlying observed on the Final Observation Date.
– Return is expressed as a percentage of the Nominal Value.
– Extraordinary events may lead to changes to the product’s terms or the early termination of the product and could result in losses on your investment
– The product is available through a public offering during the applicable offering period in the following jurisdiction(s): United Kingdom
The product is aimed at investors who:
– Have specific knowledge or experience of investing in similar products and in financial markets, and have the ability to understand the product and its
risks and rewards.
– Seek a product offering growth and have an investment horizon in line with the recommended holding period stated in the key information document.
– Are able to bear total loss of their investment and accept the risk that the Issuer and / or Guarantor could fail to pay the capital and any potential return.
– 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.
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 by enclosing a cheque to Moneyworld.
Important Plan Dates
Closing Date: 12 March 2021
ISA Transfer Closing date: 26 February 2021
Is the Causeway Securities 6 Year FTSE 100 Kick Out 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.
♦ 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 Asset which allows you to understand the risks associated with this investment Plan.
♦ You understand that investment returns may not be paid until the Maturity Date and you are willing to invest your Initial Capital for a period of up to 6 years.
♦ You understand the risk to capital in the event of an Issuer default and if the capital protection barrier is breached at maturity.
♦ You understand the Plan may mature early, returning 100% of your Initial Capital plus a return equivalent to 8.3% per annum.
♦ You have a positive view of the performance of the FTSE 100 Index over the next 6 years.
♦ You are willing to invest for a period of up to 6 years.
♦ You have at least £10,000 to invest.
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 you do not understand the risk disclosures in the brochure
♦ You are seeking regular income from this investment during the 6 year investment term.
♦ You are not comfortable with or able to sustain a total loss of your investment.
♦ You are not comfortable that your investment may be at risk if the Issuer becomes insolvent or if the Underlying Asset falls by more than 35% from its Start Level.
♦ You do not have a positive view of the performance of the Index over the next 6 years.
♦ You are not willing to invest for a period of up to 6 years.
♦ You do not have £10,000 to invest.