The Causeway Securities 6 Year FTSE Growth Kick Out Plan is a maximum 6 year plan that offers potential growth of 4.50% for each 6 month period the plan runs, subject to the performance of the underlying indices.
The Plan will Kick-Out if the respective Closing Level of each Underlying Asset, on any Observation Date, is at or above 105% of its respective Opening Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 4.50% for each 6 month period that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be 20th May 2021, one semester after the Start Date.
If on the Final Observation Date the Closing Level of the worst performing Underlying Asset is less than 65% of the Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the worst performing Underlying Asset is below the Opening Level.
The Counterparty of the Securities is Goldman Sachs International. If Goldman Sachs International were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset
Subject to a minimum investment of £10,000, the Plan is available to: Direct Investment; ISA/ISA Transfers; Pensions; Companies; Trusts; Charities.
It is Causeway Securities understanding of current legislation and known HMRC practice that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Capital Gains Tax. Investors should obtain their own tax advice.
Other Key Information
The product is in the form of a note issued under Cayman law. It is not an interest bearing security. The payment obligations of the product manufacturer are guaranteed by Goldman Sachs International
Goldman, Sachs & Co. Wertpapier GmbH (see http://www.gspriips.eu or call +442070510101 for more information)
The product provides the potential for capital growth and does not pay interest. What you will receive at the end of the term of the product is not certain and will depend on the performance of the class 0930 preference shares issued by GOLDMAN SACHS (CAYMAN) LIMITED (ISIN: GS00PSH09307) (the preference shares). The performance of the preference shares is in turn linked to the performance of the FTSE 100 Index (the underlying asset). In addition, you will take the risk that some or all of the value of your investment may be lost at the end of the term of the product. The term of the product will end no later than November 27, 2026.
However, the product may terminate early depending on the performance of the underlying asset. Each note has a face value of GBP 1,000. The issue price is 100.00% of the face value. The product will be listed on Luxembourg Stock Exchange (Euro MTF).
Autocall feature: If the closing price of the underlying asset on any autocall observation date is at or above 105.00% of the initial reference price, the preference shares and the notes will terminate on the corresponding autocall payment date. In this case, you will receive the autocall payment shown below for each note that you hold.
Repayment at maturity:
This section applies only if no autocall occurs as described above.
On November 27, 2026, for each note that you hold:
1. If the closing price of the underlying asset on November 20, 2026 is at least equal to the barrier price, you will receive GBP 1,000.00; or
2. Otherwise, you will receive GBP 1,000.00 multiplied by (i) the closing price of the underlying asset on November 20, 2026 divided by (ii) the strike price of the underlying asset.
The initial reference price of the underlying asset is the closing price on November 20, 2020.
The strike price is 100.00% of the initial reference price. The barrier price is 65.00% of the initial reference price.
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 underlying asset, the product and the product manufacturer. 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.
The product is intended to be offered to retail investors who fulfil all of the criteria below:
1. 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;
2. seek capital growth, expect the movement in the underlying asset 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;
3. accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product but otherwise are able to bear a total loss of their investment;
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 (Cheque Payment): 06 November 2020
Closing Date (Electronic Payment): 13 November 2020
ISA Transfer Closing date: 30 October 2020
Is the Causeway Securities 6 Year FTSE Growth 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 or you have the necessary investment experience to make this investment on a non advised basis.
♦ 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 Assets 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 that the return of your amount invested and any potential growth on capital invested will depend on the performance of the Underlying Asset.
♦ You understand that if the Counterparty was to default you could sustain total loss of your investment and any Potential Investment Returns; and are able to sustain this
♦ You understand that you will lose, and are able to withstand the loss of, more than 35% of your Initial Investment if the Final Level of either Underlying Asset is below 65% of the Opening Level on the Final Observation Date.
♦ 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 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 that the return of your investment is linked to the performance of the Underlying Asset.
♦ You are not comfortable with or able to sustain a total loss of your investment.
♦ You are not willing to put your Initial Investment at risk, or are uncomfortable in putting your Initial Capital at Risk.
♦ You do not have a positive view of the performance of the FTSE 100 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.