The iDAD Ultra Defensive Callable Supertracker Plan is a maximum 6 year and 2 week investment that offers potential growth based on the performance of the FTSE 100 index.
The Plan is constructed to offer a potential return of 8.00% per annum to the redemption date if the Issuer calls the investment early (please refer to the ‘Callable Feature’ below), or 430% participation in any growth of the FTSE™ 100 Index at Maturity.
If the Plan is not called early, at maturity, the investor receives a return of 430% of any positive growth in the FTSE™ 100 Index. For example, at maturity, if the FTSE™ 100 Index had risen 10% from the Initial Index Level, the investor will receive 100% of their investment back plus a 43% growth payment(10% X 430%).
The Callable Feature – what is this and when may this occur?
On each Quarterly Observation Date, from the 24 months after issue date, the Issuer has the option to ‘call’ the Plan at their discretion. This means the Plan will be redeemed at that point and investors will receive their Initial Capital into the Plan, together with the fixed rate of return detailed above. For example, if the Issuer called the Plan on the second anniversary, the investor would receive 100% of their Initial Capital plus a 16.00% return.
The callable feature provides the Issuer with the ability to redeem the Plan early on any Callable Observation Date, details of which can be found in the brochure.
Capital Protection Barrier
40% of the Initial Level. If the Underlying Index is below 40% of its Initial Level on the Final Observation date, capital return will be reduced on a 1-for-1 basis. For example, the Underlying has fallen to 30% of its initial level, 30% of the capital will be returned. However, if on the Final Valuation Date, the Underlying Index is at or above 40% of its Initial Level, capital is protected in full.
Issuer / Guarantor
SG Issuer / Societe Generale
Other Key Information
This product is an unsecured debt instrument governed by English law. This product tracks the value of a Preference Share issued by Mapleis which is linked to the Underlying.
Société Générale, http://kid.sgmarkets.com, Call +33(0) 969 32 08 07 for more information
This product is designed to provide a return when the product is redeemed (either at maturity or when redeemed early). The Issuer is able to terminate the product at its discretion before the final maturity date. It is likely that the Issuer will redeem the product early at its own discretion in situations including, but not limited to, a relevant increase of the level of the Underlying, or a material fall in its refinancing rate. If the product is not redeemed early, both the return and the capital redemption at maturity will be linked to the performance of the Reference Underlying. Your capital will be fully at risk when investing in this product.
Early Redemption
On each Issuer Call Date, the Issuer has the right to terminate the product at its discretion. In this case, the product will be redeemed early and you will receive:
100% of the Nominal Value plus the Issuer Call Coupon multiplied by the number of periods the product has elapsed since the Initial Observation Date. A period corresponds to three months.
Final Redemption
On the Maturity Date, provided that the product has not been redeemed early, you will receive a final redemption amount.
– If the Final Level of the Reference Underlying is at or above the Final Barrier, you will receive: 100% of the Nominal Value, plus the performance of the Reference Underlying multiplied by the Participation.
– If the Final Level of the Reference Underlying is below the Final Barrier and is at or above the Capital Barrier, you will receive: 100% of the Nominal Value.
– Otherwise, you will receive the Final Level of the Reference Underlying multiplied by the Nominal Value. In this scenario, you will suffer a partial or total loss of your invested amount.
Additional Information
– The level of the Reference Underlying corresponds to its value expressed as a percentage of its Initial Value.
– The Initial Value of the Reference Underlying is its value observed on the Initial Observation Date.
– The Final Level is the level of the Reference Underlying observed on the Final Observation Date.
– Return is expressed as a percentage of the Nominal Value.
– Extraordinary events may lead to changes to the product’s terms or the early termination of the product and could result in losses on your investment
– The product is available through a public offering during the applicable offering period in the following jurisdiction(s): United Kingdom
The product is aimed at investors who:
– Have specific knowledge or experience of investing in similar products and in financial markets, and have the ability to understand the product and its risks and rewards.
– Seek a product offering capital growth and have an investment horizon in line with the recommended holding period stated in the key information document.
– Are able to bear total loss of their investment and accept the risk that the Issuer and / or Guarantor could fail to pay the capital and any potential return.
– 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.
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?
Application Fee
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 (payment by cheque): 06 July 2022
Closing Date (payment by bank transfer): 13 July 2022
ISA Transfer closing date: 29 June 2022
Important Documents
> Plan Brochure – Ultra Defensive Callable Supertracker Plan – July 2022
Application Forms
Other application form
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Is the iDAD Ultra Defensive Callable Supertracker 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.
♦ Understand the Plan may mature early, returning 100% of your Initial Capital plus a return equivalent to 8.00% per annum.
♦ 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 Guarantor default and if the Capital Protection Barrier is breached on any closing day of the Underlying Index and remains below the Capital Protection Barrier 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 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.
♦ Don’t understand the risks of the Plan and that capital is at risk.
♦ 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 Guarantor becomes insolvent or if the Underlying Index falls more than 60% from the Initial Level.
♦ Cannot make an informed decision based on the information within this brochure or from the Issuer’s Key Investment Document (KID).