The Causeway Securities UK/EU Step Down Kick Out Plan is a maximum 6 year plan that offers potential growth of 9.3% for each year 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 from end of Year 2, is at or above the Kick Out Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 9.3% for each year that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be two years after the Start Date.
If on the Final Observation Date the Closing Level of the worst performing 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 worst performing Underlying Asset is below its Opening Level.
The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley & Co International plc. 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 Assets.
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
English law governed notes
Morgan Stanley & Co. International plc (https://sp.morganstanley.com/EU/)
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. If, at maturity, the final reference level of the worst performing underlying has fallen below its barrier 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 its 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 and autocall payments are shown in the table(s) in 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 its barrier level, a cash payment equal to GBP 1,000.00; or
2. if the final reference level of the worst performing underlying is below its barrier 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 strike 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 issuer may terminate the product, as applicable, early. These events are specified in the product terms and principally relate to the product and the 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.
You do not have any entitlement to a dividend from any of the underlyings and you have no right to any further entitlement resulting from any such underlying (e.g., voting rights).
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 expect the movement in the underlyings to perform in a way that generates a positive return. They have a long investment horizon and understand that the product may terminate early;
3. they are able to bear a total loss of their initial investment, consistent with the redemption profile of the product at maturity (market risk);
4. they accept the risk that the issuer could fail to pay or perform its obligations under the product irrespective of the redemption profile of the product (credit risk);
5. they are willing to accept a level of risk of 5 out of 7 to achieve potential returns, which reflects a medium-high risk (as shown in the summary risk indicator in the key information document which takes into account both market risk and credit risk).
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: 16 February 2024
ISA Transfer Closing date: 02 February 2024
Is the Causeway Securities UK/EU Step Down 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 Assets.
♦ 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 the return shown in the brochure.
♦ You have a positive view of the performance of the Underlying Assets 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 investment term.
♦ You are not comfortable that the return of your investment is linked to the performance of the Underlying Assets.
♦ 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 Assets fall by more than 35% from its Opening Level.
♦ You do not have a positive view of the performance of the Underlying Assets 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.