The Causeway Securities UK Step Down Kick Out Plan (Y2 60) is a maximum 6 year plan that offers potential growth of 7.2% for each year the plan runs, subject to the performance of the underlying index.
The Plan will Kick-Out if the Closing Level of the 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 the Potential Investment Return of 7.2% for each year 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 Underlying Asset is less than 60% of its Opening Level (representing a decline of more than 40% 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.
By investing in this Plan you take a possible credit risk with Credit Agricole as the Counterparty. They will be responsible for the payment of any return of capital and any potential investment return due from the Plan. In the event of bankruptcy or payment default by the Counterparty you may be exposed to partial or total loss of capital.
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 debt instrument, governed by English law, which performance depends on the performance of an underlying reference value. The product bears a risk of losing some or all of the capital invested.
Crédit Agricole CIB
To receive a single payment on the Maturity Date or on any earlier Payment Date on which the product terminates in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest.
The amounts you will receive depend directly on the performance of the Underlying(s) and are determined by referencing the performance of Preference Shares which are directly linked to the Underlying(s). Therefore, for ease of explanation of the objectives of the product, the product is described in this document as being linked to the Underlying(s).
• Autocall Event: If the Underlying Performance is greater than or equal to the relevant Autocall Barrier Level on any Autocall Valuation Date, the product will be redeemed early and you will receive, in addition to the Nominal Amount, an amount equal to the Bonus Amount corresponding to such Autocall Valuation Date on the immediately following Payment Date. No further payments will be made following such payment and early redemption.
• Redemption on the Maturity Date:
Redemption Amount: If the product is not redeemed early, then you will receive one of the following:
▪ If a Barrier Event has NOT occurred:
– If the Final Underlying Performance is greater than or equal to the last Autocall Barrier Level, you will receive, in addition to the Nominal Amount, the Bonus Amount corresponding to the Final Valuation Date.
– If the Final Underlying Performance is lower than the last Autocall Barrier Level, you will receive the Nominal Amount.
▪ Otherwise, you will receive an amount equal to the Nominal Amount diminished by an amount equal to the Nominal Amount multiplied by the Final Performance. The amount paid in such case will be less than the Nominal Amount and you may lose some or all of your capital.
Early redemption and adjustments: The terms of the product provide that if certain defined events, in addition to those described above, occur (principally but not exclusively in relation to any Underlying, or the Manufacturer of the product (which may include the discontinuation of the Manufacturer’s ability to carry out the necessary hedging transactions)), adjustments may be made to the terms of the product to account for the relevant event or the product may be early redeemed. The amount paid on any early redemption may be less than the amount originally invested.
This product is intended for clients who:
• have sufficient knowledge and experience in products such as the one described in the key information document
• are willing and able to bear a potentially total loss
• have a risk tolerance consistent with the summary risk indicator in the key information document
• are expressing a view on the underlying consistent with the conditions for a positive outcome (as stated in the product description)
• have a horizon consistent with the term of this product as determined independently or on the basis of professional advice
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: 19 February 2024
ISA Transfer Closing date: 05 February 2024
Is the Causeway Securities UK Step Down Kick Out Plan (Y2 60) 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
♦ 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 the return shown in the brochure.
♦ You have a positive view of the performance of the Underlying Asset over the Investment Term.
♦ 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 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 Underlying Asset over the Investment Term
♦ You are not willing to invest for a period of up to 6 years.
♦ You do not have £10,000 to invest.