The iDAD UK & Europe Defensive Kick Out Plan is a maximum 6 year investment that offers potential growth of 8% p.a. based on the performance of the FTSE 100 index.
This Plan provides you with the opportunity to earn 8% p.a. if both the Underlying market Indices remains flat or falls slightly. If the closing level of both Underlying Indices on any 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 kickout, i.e. mature early and make a gross investment return of 8% for each year that the Plan has been in force.
The first observation date will be 4 years after the plan start date. If the plan has not matured early, and the closing level of both underlying indices on the final valuation date (the ‘final levels’) are at least equal to or above the relevant kick out trigger level, the plan will provide an investment return at maturity equal to 148%, made up of 100% of your investment and 48% return (6 x 8%) of the money you invested.
The product is 100% Capital Protected so full capital will be returned at maturity irrespective of the performance of the underlying indices.
This product is not FSCS protected and will be be exposed to the credit risk of the Issuer, who for this plan will be Morgan Stanley & Co International Plc. If the issue becomes insolvent or cannot make the payments on the product for any other reason, you could lose some or all of your investment.
Other Key Information
English Law governed notes
Morgan Stanley & Co. International plc (http://sp.morganstanley.com/)
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.
Early termination following an autocall: The product will terminate prior to the maturity date if, on any autocall observation date, the reference level of the worst performing underlying 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 GBP 1.00.
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 underlyings, 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 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:
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 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 underlyings 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 (payment by cheque): 07 February 2023
Closing Date (payment by bank transfer): 14 February 2023
ISA Transfer closing date: 31 January 2023
Is the iDAD Capital Protected US & UK Defensive 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.
♦ Wish to have exposure to the Underlying Indices.
♦ Understand the Plan may mature early, returning 100% of your Initial Capital plus the return specified 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 an 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 Indices.
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 either 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).