The iDAD 4 Year Memory Income Kick Out Plan is a maximum 4 year and 1 week plan that offers potential income of 1.6% per quarter, subject to the performance of the underlying indices.
A maximum 4 years 1 week investment
FTSE™ 100 Index; Nasdaq 100 Index; Eurostoxx 50 Index
Issuer / Guarantor
Goldman Sachs & Co. / Goldman Sachs International (London)
How the 4 Year Memory Income Kick Out plan works
If on any of the quarterly Interest Observation Dates (set out on page 3 of the brochure), the closing levels of all the Underlying Indices are at or above 80% of theirinitial levels, the income will be paid (1.6% per quarter) plus any previous missed payments.
This Plan will Kick out and mature early if all the Underlying Indices are equal to or above 98% their Initial Levels on any quarterly observation date starting at 12 months. If early maturity occurs, full capital is returned plus any income due for that quarter and the Plan will end. If early maturity does not occurthe Plan will continue to the Final Observation date.
At the Final Observation date, if all the Underlying Indices are at or above 60% of their Initial Levels, then full capital is returned. If any Underlying is below 60% of its Initial Level, capital return will be reduced on a 1-for-1 basis. For example if the worst performing Underlying has fallen to 40% of its Initial Level, 40% of the capital will be returned.
Memory Income Feature
If the closing level of any Underlying is below 80% of its initial level on an observation date, the income will not be paid on this payment date. If the indices then rise back above 80% any missed income will be recouped.
The table on page 4 of the brochure shows how this can work based on a £10,000 investment. You can see that the income is paid on the first two observations but then is not paid on the next four. On the seventh the income trigger is activated again so the income for that observation and any missed observations is paid.
How can I hold this?
Direct, ISA/ISA Transfers, SIPPs, SSAS,Corporate, Charities and Trusts
Other Key Information
The product is in the form of a note issued under English law. It is an interest bearing security, but your interest is not guaranteed. The payment obligations of the product manufacturer are guaranteed by Goldman Sachs International
Goldman, Sachs & Co. Wertpapier GmbH (see http://www.gspriips.eu or call +442070510101 for more information)
The product pays interest that is linked to the performance of the underlying assets (as defined below). What you will receive at the end of the term of the product is not certain and will depend on the performance of a basket consisting of the FTSE 100 Index, the NASDAQ-100 Index® and the EURO STOXX 50® Index (Price EUR) (the underlying assets). In addition, you will take the risk that some or all of the value of your investment may be lost at the end of the term of the product. The term of the product will end no later than November 27, 2024. However, the product may terminate early depending on the performance of the underlying assets. Each note has a face value of GBP 1. The issue price is 100.00% of the face value. The product will be listed on Luxembourg Stock Exchange (Euro MTF).
Interest: If the closing price of each underlying asset on an interest observation date is at or above its interest barrier, you will receive interest of GBP 0.016 on the corresponding interest payment date for each note that you hold. In this case, you will also receive GBP 0.016 for each previous interest payment date where no interest has been payable.
Autocall feature: If the closing price of each underlying asset on any autocall observation date is at or above its autocall barrier, the product will terminate on the corresponding autocall payment date. In this case, you will receive GBP 1.00 in addition to any interest payable on or around such date for each note that you hold.
Repayment at maturity:
This section applies only if no autocall occurs as described above.
On November 27, 2024, for each note that you hold:
1. If the closing price of the underlying asset with the lowest performance (as compared with its initial reference price) on November 20, 2024 is at least equal to its barrier price, you will receive GBP 1.00; or
2. Otherwise, you will receive GBP 1.00 multiplied by (i) the closing price of the underlying asset with the lowest performance (as compared with its initial reference price) on November 20, 2024 divided by (ii) the strike price of such underlying asset.
The initial reference price of an underlying asset is the closing price of such underlying asset on November 20, 2020.
The strike price of an underlying asset is 100.00% of the initial reference price of such underlying asset. The barrier price of an underlying asset is 60.00% of the initial reference price of such underlying asset.
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 assets, the product and the product manufacturer. 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.
The product is intended to be offered to retail investors who:
1. 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;
2. seek income, expect the movement in the underlyings assets 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. accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product but otherwise are able to bear a total loss of their investment;
4. 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; and
5. are making use 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 (Cheque payments): 06 November 2020
Closing Date (Electronic payments): 13 November 2020
ISA Transfer closing date: 30 October 2020
Is the iDAD 4 Year Memory Income Kick Out Plan right for me?
This Plan may be suitable for investors who:
♦ Are seeking the opportunity for higher income returns than current cash rates at the time this Plan is launched
♦ Understand how the capital at risk works and that they could lose their investment in full
♦ Wish to have exposure to the Underlying Indices
♦ Understand the Plan may mature early, returning 100% of your Initial Capital plus any income paid
♦ Are looking to invest for the medium term, being happy to remain invested until the Maturity Date
♦ Can afford to have their cash invested for the full term of the Plan
♦ Wish to use this investment as part of a well-diversified portfolio
♦ Understand the risk to capital in the event of an Issuer default and if the capital protection barrier is breached at maturity
♦ Should they need to sell their investment before maturity, accept that the trading price may mean they get back an amount less than they invested
♦ Appreciate that the fixed rate of return is conditional on the performance of the Underlying Indices
This Plan may not be suitable for investors who:
♦ Have not received advice, completed an appropriateness test or spoken to a financial adviser who deems the Plan appropriate for them
♦ Don’t understand the risks of the Plan and that capital is at risk
♦ Require a guaranteed income
♦ Don’t want exposure to equity Indices
♦ Require access to their investment over the term
♦ Are unsure how the Plan works
♦ Do not have at least £10,000 to invest
♦ Are not comfortable that their investment may be at risk if the Issuer becomes insolvent or if one of the Underlying Indices falls more than 60% from the Initial Level
♦ Cannot make an informed decision based on the information within the brochure or from the Issuer’s Key Investment Document (KID)