The Hilbert 3 Stock Defensive Autocall has a maximum term of 7 years and offers a potential return of 9.075% for each semi annual period the plan runs, subject to the performance of the underlying assets.
Up to 7 years. However, the Plan can mature early from the first semi annual observation date, if certain criteria are met (see “Early Maturity” below).
The share price of Barclays Plc, Aviva Plc, Vodafone Group Plc as listed on the London Stock Exchange (‘The Shares’)
Citigroup Global Markets Funding Luxembourg S.C.A.(‘Citigroup’)
Administrator and Custodian
Hilbert Investment Solutions
The Plan will mature early if the Closing Levels of all three Underlying Assets are at least equal to the relevant Reference Level on any Semi Annual Measurement Date from the end of the first 6 month period. If this happens, you will receive a Fixed Growth Return equal to 9.075% for each semi annual observation date that has passed since the Start Date. You will also be repaid your original investment in full at this point.
Repayment of your investment if no early maturity
If the Final Level of any of the Underlying Assets is more than 50% below its Opening Level, you will receive back significantly less than your initial investment. The amount of your investment you receive back will be reduced by the same percentage amount that the worst performing Underlying Asset has fallen in value from the Start Date.
Expected tax treatment
Capital Gains Tax
Other Key Information
English law governed notes
The product issuer is Citigroup Global Markets Funding Luxembourg S.C.A. with a guarantee by Citigroup Global Markets Limited.
The product is designed to provide a return in the form of a cash payment on the maturity date in an amount that depends on whether the worst performing underlying satisfies the barrier conditions specified below. The product has a fixed term and will terminate on the maturity date, unless terminated early.
Early termination following an autocall: The product will terminate prior to the maturity date if, on any autocall observation date, the reference price of the worst performing underlying is at or above the relevant autocall barrier price. 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, autocall barrier prices and autocall payments are shown 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 price of the worst performing underlying is at or above 60.00% of its initial reference price a cash payment equal to GBP 2,260.00;
2. otherwise, if the final reference price of the worst performing underlying is at or above 50.00% of its initial reference price and below 60.00% of its initial reference price a cash payment equal to GBP 1,000.00;
3. otherwise, if the final reference price of the worst performing underlying is below 50.00% of its initial reference price a cash payment equal to (i) the product notional amount multiplied by (ii) (A) the final reference price of the worst performing underlying divided by (B) its initial reference price.
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 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 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:
♦ they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, with experience of investing in and/or holding a number of similar products providing a similar market exposure;
♦ they seek capital growth, 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;
♦ 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
♦ they are willing to accept a level of risk to achieve potential returns that is consistent with the summary risk indicator shown on the Key Information Document.
The product is not intended to be offered to retail clients who do not fulfil these criteria.
Please ensure that you have read and understood the important documents contained on this page.
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 (Cheques): 30 December 2019
Closing Date (Bank Transfers): 06 January 2020
ISA Transfer closing date: 30 December 2019
Could the Hilbert 3 Defensive Autocall be right for me?
If you are able to answer ‘yes’ to all of the following then an investment in the Plan may be right for you.
♦ Are you looking for an capital growth rather than income?
♦ Are you comfortable that the capital growth is not guaranteed?.
♦ Are you comfortable putting some or all of your investment at risk (i.e. you could lose some money)?
♦ Are you comfortable with leaving your money invested for up to 7 years?
♦ Do you have some existing knowledge of equity based investment? For example have you invested in similar products in the past and do you have a general interest in financial markets?
If you are unsure as to the suitability of this product then we recommend you seek financial advice.