The Causeway Securities S&P 500 Defensive Memory Income Plan is a 5 year plan that offers a potential quarterly income of 1.775%.
The Plan will pay a quarterly coupon if the respective Closing Level of the Underlying Asset, on any Observation Date, is at or above 65% of its respective Opening Level. In this event an investor will receive a quarterly coupon of 1.775% plus any previously missed coupon payments (Coupon Memory Feature). Otherwise, no income will be paid at that Observation 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 Barclays Bank plc. If Barclays 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
English law governed notes
Barclays Bank PLC (www.barx-is.com). The PRIIP manufacturer is also the product issuer.
The product is designed to provide a return in the form of (1) conditional interest payments and (2) a cash payment on the maturity date. The amount of these payments will depend on the performance of the underlying. The product has a fixed term and will terminate on the maturity date. If, at maturity, the final reference level of the underlying has fallen below the barrier level, the product may return less than the product notional amount or even zero.
Interest: On each interest payment date you will receive an interest payment of GBP 17.75 together with any previously unpaid interest payments if the reference level is at or above the 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. The relevant dates are shown in the table(s) below.
Termination on the maturity date: On termination of the product on the maturity date you will receive:
1. if the final reference level is at or above the barrier level, a cash payment equal to GBP 1; or
2. if the final reference level is below the barrier level, a cash payment directly linked to the performance of the underlying. The cash payment will equal (i) the product notional amount multiplied by (ii) (A) the final reference level divided by (B) the 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 underlying, 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.
For display purposes numbers within this document have been cut off at 4 decimal places.
The product is intended to be offered to retail investors who fulfil all of the criteria below:
1. they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, either independently or through professional advice, and they may have experience of investing in and/or holding a number of similar products providing a similar market exposure;
2. they seek income, expect the movement in the underlying to perform in a way that generates a favourable return and have an investment horizon of the recommended holding period specified in the key information document;
3. 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
4. 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.
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 directly to us.
Important Plan Dates
Closing Date: 06 October 2023
ISA Transfer Closing date: 22 September 2023
Is the Causeway Securities S&P 500 Defensive Memory 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 Plan.
♦ 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 have a positive view of the performance of the S&P 500 Index over the next 5 years
♦ You are willing to invest for a period of up to 5 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 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 do not have a positive view of the performance of the S&P 500 Index over the next 5 years
♦ You are not willing to invest for a period of up to 5 years.
♦ You do not have £10,000 to invest.