The iDAD Capital Protected FTSE 100 Kick Out Plan is a maximum 6 year investment that offers potential growth of 6% per annum, subject to the performance of the FTSE 100 index.
This Plan provides investors with the opportunity to earn 6.00% p.a. if the Underlying market Index remains flat or rises slightly. If the closing level of the Underlying Index on any early observation date (set out in the brochure) before the Final Valuation Date is at least equal to or above the Kick Out Trigger Level, the Plan will kick out, i.e. mature early and make a gross investment return of 6.00% for each year that the Plan has been in force.
The first early observation date will be three years after the Plan Start Date. If the Plan has not matured early, and the closing level of the Underlying Index on the Final Valuation Date (the ‘Final Levels’) is at least equal to or above the relevant Kick Out Trigger Level, the Plan will provide an investment return at the Maturity Date equal to 136% made up of 100% of your investment plus a 36% return, (6 X 6.00%) of the money you invested.
The Product is 100% Capital Protected so full capital will be returned to investors at maturity irrespective of the performance of the Underlying Index.
Investors will be exposed to the credit risk of the Issuer (Morgan Stanley & Co). If the Issuer becomes insolvent or cannot make the payments on the Product for any other reason, investors could lose some or all of their investment. A decline in the Issuers credit quality is likely to reduce the market value of the Product and therefore the price an investor may receive for the Product if they were to sell them in the market. This product is not FSCS protected.
Other Key Information
English law governed notes
Morgan Stanley & Co. International plc is not established in the European Union (EU) or supervised by an EU competent authority.
It is authorised by the U.K. Prudential Regulation Authority and regulated by the U.K. Financial Conduct Authority and U.K. Prudential Regulation Authority.
The product is designed to provide a return in the form of a cash payment on termination of the product. The product has a fixed term and will terminate on the maturity date, unless terminated early. The payment at maturity will not exceed GBP 1,360.00.
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 relevant 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, autocall barrier levels and autocall payments are shown in the table(s) on 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 initial reference level, a cash payment equal to GBP 1,360.00; or
2. if the final reference level is below the initial reference level, a cash payment equal to GBP 1,000.00.
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 early. These events are specified in the product terms and principally relate to the underlying, the product and the product issuer. 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.
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 basic knowledge and/or experience of investing in similar products which provide a similar market exposure and have the ability to understand the product and its possible risks and rewards, either independently or through professional advice;
2. they seek capital growth and/or full protection of the product notional amount, subject to the issuer’s ability to pay, 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 could fail to pay or perform its obligations under the product but otherwise they are not able to bear any 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 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 of business 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: 18 October 2022
ISA Transfer closing date: 04 October 2022
Is the iDAD Capital Protected FTSE 100 Kick Out Plan right for me?
This Plan may be suitable for investors who:
♦ Are seeking the opportunity for higher 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 Index.
♦ Are seeking to protect capital in full at maturity.
♦ Understand the Plan may mature early, returning 100% of your Initial Capital plus the return shown in the plan brochure.
♦ 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 a Issuer default
♦ 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 Index.
This Plan may not be suitable for investors who:
♦ Have not received advice or spoken to a financial adviser who deems the Plan appropriate for them.
♦ Require a guaranteed income.
♦ Don’t want exposure to equity Index.
♦ 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.
♦ Cannot make an informed decision based on the information within this brochure or from the Issuer’s Key Investment Document (KID).