The Causeway Securities FTSE 100 Quarterly Income Plan is a maximum 7 year plan that offers potential quarterly income of 1.125%, subject to the performance of the underlying index.
If the Closing Level of the Underlying Asset on any Observation Date is at least equal to 80% of its Opening Level, the Plan will pay a gross income of 1.125% for that quarter. No income will be payable for a quarter if the Closing Level of the Underlying Asset is below 80% of its Opening Level on the Observation Date. The first quarterly Observation Date will be three months after the Start Date. If the kick-out condition is met (see below), income will be paid in respect of that quarter and the Plan will mature early. No further income payments will then be payable.
From Year 2, the Plan will Kick-Out if the respective Closing Level of the 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 final Investment Return of 1.125%. The first Observation Date on which an early maturity could be triggered will be 16th October 2023, two years after the Start Date.
If on the Final Observation Date the Closing Level of the Underlying Asset is less than 65% of its 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 Underlying Asset is below its Opening Level.
The Counterparty of the Securities is BNP Paribas. If BNP Paribas 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 Income Tax. Investors should obtain their own tax advice.
Other Key Information
This product is a certificate, a transferable debt instrument.
BNP Paribas S.A. – www.bnpparibas.com Call +33 (0)1 57 08 22 00 for more information
This certificate provides a return which depends on the performance over the lifetime of the certificate of an underlying redeemable preference share issued by BNP Paribas Synergy Limited the value of which is in turn linked to the performance of an underlying share and/or index or basket of shares and/or indices. The description below is therefore based on the expected value of such preference share however the real return will depend on the actual value of the preference share.
The objective of this product is to provide you with a return based on the performance of an underlying index. This product has a fixed term and will redeem on the Redemption Date unless redeemed early in accordance with the Automatic Early Redemption provisions below. The product may also pay Ratchet under predefined conditions in accordance with the Ratchet provisions below.
Unless the product has been redeemed early, the following provisions would apply.
On the Redemption Date you will receive in respect of each certificate:
1. If a Barrier Event has not occurred: a payment in cash equal to the Notional Amount.
2. If a Barrier Event has occurred: a payment in cash equal to the Notional Amount decreased by the Performance of the Underlying. In this case you will suffer a partial or total loss of the Notional Amount.
Ratchet: A conditional Ratchet is due for payment at the relevant Conditional Ratchet Rate if, on a Ratchet Valuation Date, the closing price of the Underlying is greater than or equal to the relevant Conditional Ratchet Barrier.
All due conditional Ratchets will be paid at the Redemption Date or upon early redemption.
Automatic Early Redemption: If, on any Autocall Valuation Date, the closing price of the Underlying is greater than or equal to 105% of the Initial Reference Price, the product will be redeemed on the corresponding Early Redemption Date. You will receive for each certificate a payment in cash equal to the Notional Amount.
– A Barrier Event shall be deemed to occur if the Final Reference Price is below the Barrier.
– The Performance of an Underlying is the difference between its Final Reference Price and its Initial Reference Price, divided by its Initial Reference Price, expressed in absolute value.
– The Initial Reference Price is the closing price of the Underlying on the Strike Date.
– The Final Reference Price is the closing price of the Underlying on the Redemption Valuation Date.
The product is intended to be offered to retail investors who:
– have a long term investment horizon (over five years).
– seek to invest in an income paying product, potentially to diversify their portfolio.
– are able to bear losses up to the total of the Notional Amount and are aware of the possible early termination of the product.
– have been informed or have sufficient knowledge of the financial markets, their functioning and their risks, and the asset class of the underlying.
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: 08 October 2021
ISA Transfer Closing date: 24 September 2021
Is the Causeway Securities FTSE 100 Quarterly Income 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 Asset which allows you to understand the risks associated with this investment Plan.
♦ You are seeking the opportunity for higher income returns than current cash rates at the time this Plan is launched.
♦ 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 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 final income payment of 1.125%.
♦ You have a positive view of the performance of the FTSE 100 Index over the next 7 years
♦ You are willing to invest for a period of up to 7 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 require a guaranteed income
♦ 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 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 Opening Level.
♦ You do not have a positive view of the performance of the FTSE 100 Index over the next 7 years
♦ You are not willing to invest for a period of up to 7 years.
♦ You do not have £10,000 to invest.