The Dura UK & Europe Kickstart Kick Out Plan has a maximum term of 5 years and offers a potential return of 13% for the first year and 7% a year thereafter, subject to the performance of the FTSE 100 Index and EURO STOXX 50 Index.
The potential return: There are several opportunities during the term of the Plan for you to receive a return on your Amount Invested, depending on the performance of the UK and European stock markets – specifically the FTSE 100 Index (UKX) (the ‘FTSE 100’) and the EURO STOXX 50 Index (the ‘EURO STOXX 50’), together referred to as the ‘indexes’.
There are set dates during the investment term (‘Early Maturity Dates’) where you might receive a return. The first Early Maturity Date is one year after the Start Date.
If both the indexes close above a pre-set level on an Early Maturity Date (see the diagram on brochure for details of these levels), the Plan will mature early (sometimes known as a ‘kick out’), repaying your Amount Invested plus a return equal to 13.00% for the first year and 7.00% (not compounded) for each subsequent year that passes since the Start Date.
If on the Final Maturity Date there has been no early maturity and the closing level of at least one of the indexes (its ‘Final Level’) is less than 100% of its closing level on the Start Date (its ‘Start Level’), your investment will have earned no return.
The repayment of your Amount Invested: If either of the indexes fails to close at or above the required level on any of the Early Maturity Dates, your Amount Invested is at risk. The amount you will get back at maturity will depend on the Final Level of the worst performing index only:
If the Plan runs for the full term and both the indexes close at or above 65% of their Start Levels, you will be repaid your Amount Invested in full.
However, if the Final Level for at least one index is below 65% of its Start Level (meaning it has fallen more than 35% since the start of the Plan), the repayment of your Amount Invested will be reduced by 1% for every 1% fall in the worst performing index (please see page 5 of the brochure for some examples of how much you could lose in different scenarios).
The issuer for this plan is Morgan Stanley B.V. Morgan Stanley is responsible for meeting any payment obligations of Morgan Stanley B.V., meaning it expects to pay you any return or repayment of your Amount Invested due under the Plan if Morgan Stanley B.V. is unable to do so. Because Morgan Stanley is ultimately responsible, it’s important that you understand what will happen if it collapses / fails or become insolvent, meaning it fails to make the payments due.
Other Key Information
English law governed notes
Morgan Stanley & Co. International plc (http://sp.morganstanley.com/). The product issuer is Morgan Stanley BV with a guarantee by Morgan Stanley.
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 underlying. 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 underlying has fallen below the 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 is at or above the 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 is at or above the barrier level, a cash payment equal to GBP 1,000.00; 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.
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 underlying.
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, as applicable, early. These events are specified in the product terms and principally relate to the product and the product 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 underlying. 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 the underlying and you have no right to any further entitlement resulting from the 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 underlying to perform in a way that generates a favourable return, have an investment horizon of the recommended holding period specified in the key information document and understand that the product may terminate early;
3. they accept the risk that the issuer or guarantor 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 and key information document 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: 13 May 2022
ISA Transfer closing date: 29 April 2022
Could the Dura Capital UK & Europe Kickstart Kick Out Plan be right for me?
This plan may be suitable for you if you agree to all of the following statements:
♦ You are comfortable with leaving your money invested for up to five years and you have access to other funds during this period for emergencies;
♦ You have at least £3,000 to invest as a lump sum;
♦ You already have a larger investment portfolio made up of different types of investments (such as bonds, funds and other equity-based investments);
♦ You are able to understand the features and risks associated with this investment;
♦ You are comfortable with investing in a Plan that is linked to the FTSE 100 and EURO STOXX 50, and have a neutral or positive outlook on the potential growth of both indexes in the five-year term;
♦ You do not expect the FTSE 100 and the EURO STOXX 50 to rise by more than 41% over the five-year term;
♦ You are looking to receive a growth return when the Plan matures, rather than a regular income;
♦ You are looking for a return which has potential to be higher than you would achieve from a risk-free investment (such as a savings account);
♦ You accept that in order to achieve a higher return, there is a risk that you may receive no return at all, or get back less than your Amount Invested at maturity;
♦ You are able to bear significant losses if either the FTSE 100 or EURO STOXX 50 has fallen by more than 35% at maturity;
♦ You understand how the Plan works, in particular that the return and any repayment of your Amount Invested at maturity are not covered by the Financial Services Compensation Plan (‘FSCS’) and depend on Morgan Stanley being able to meet its payment obligations;
♦ You understand that if you sell the Plan early, the amount you receive would depend on the value of the Plan on the date of sale and could be less than the Amount Invested;
♦ You understand the personal tax implications of an investment in the Plan;
♦ You accept the risks associated with this investment.
If you cannot agree to all of the statements above, this plan may not be suitable for you.