Important Update – Please Read
We are currently able to accept postal applications, however given the current circumstances we would suggest sending applications to us by e-mail if you can. The funds for your investment should be transferred direct to the investment company so they have cleared funds by the closing date. Account details for transferring funds are included on all application forms. Please send completed application forms and appropriateness questionnaires to us at email@example.com. We will confirm receipt of your application within one working day.
If you have opted to pay your fee separately we will provide you with our account details when confirming receipt of your application.
The Plan is designed to repay your initial investment and deliver a return dependent on the performance of the FTSE 100 index.
If at the end of any of years 3, 4, 5, 6, 7 or 8 the FTSE 100 is higher than 90% of its starting level, the Plan will mature returning your initial investment plus a fixed payment equal to 7.5% per annum (not compounded).
If the Plan runs for the full 8 years and the FTSE 100 finishes lower than 60% of its starting level, your initial investment will be reduced by 1% for every 1% fall in the FTSE 100 over the Plan Term.
Please refer to the ‘How does the Plan Work’ section of the brochure for more information, including the use of Averaging.
Other Key Information
The FTSE 100 8 Year Defensive Kick Out Plan is a structured investment. Your money will be used to buy securities issued by Investec Bank plc
Investec Bank plc
This product is denominated in GBP and is designed to return your initial investment as well as delivering a return linked to the performance of FTSE 100 (the “Underlying”) over the term of 8 years. This product also has the potential to mature early (“Kick Out”), returning your initial investment plus a return depending on the performance of the Underlying.
Early Maturity (Kick Out)
This product will “Kick Out” at the end of any year from the 3rd year onwards, returning your initial investment as well as 7.5% per year (not compounded), provided that the Underlying is above 90% of its starting level.
Maturity After 8 years
If no Kick Out occurs and the product runs to the Final Maturity Date, your return will be determined accordingly:
♦ If the Underlying is above 90% of its starting level, the product will return your initial investment plus 60%
♦ If the Underlying is equal to or below 90% of its starting level, the product will return your initial investment with no additional return
♦ However, if on the Final Maturity Date, the Underlying is below 60% of its starting level, your investment will be reduced by 1% for every 1% fall in the Underlying.
This product has been designed for investors who are looking to potentially achieve a high level of growth over a term of 6 years but can accommodate receiving their money back before the end of the term. Investors will have a medium appetite to risk. They will be prepared to risk their capital in order to achieve higher returns. Investors will understand that the potential returns of this product are linked to the performance of the FTSE 100.
Additionally, investors will have knowledge and understanding of this structured product from supporting product literature and any advice they have received, as well as an understanding of financial markets.
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: 12 June 2020
ISA Transfer closing date: 22 May 2020
Other application forms
Is the Investec FTSE 100 8 Year Defensive Kick Out Plan right for you?
This investment may be right for you if:
♦ You understand the risks of this Plan.
♦ You are prepared to risk losing some or all of your initial investment.
♦ You are looking for an investment linked to the performance of stock markets.
♦ You are looking to achieve growth over a 8 year period and can accommodate receiving your money back before the end of the Plan Term.
♦ You do not need access to your money over the next 8 years.
♦ You want a tax-efficient investment using your ISA allowance or via a SIPP/SSAS.
♦ You have a minimum of £3,000 to invest.
♦ You accept that if Investec Bank plc defaults during the Plan Term, you could lose all of your investment and will have no recourse to the Financial Services Compensation Scheme.
♦ You understand that returns are dependent on the performance of the FTSE 100, which is observed on set dates and you accept that you may not achieve any return at all.
This investment may not be right for you if:
♦ You are not prepared to risk losing some or all of your initial investment.
♦ You want a regular income and dividends.
♦ You disagree with or do not meet all of the criteria listed in the section to the left.
♦ You may need immediate access to your money before maturity.
♦ You cannot commit to the full 8 year Plan Term.
♦ You want a guaranteed return on your investment.
♦ You want to add to your investment on a regular basis.
♦ You do not want to invest in a UK onshore asset that is subject to UK tax rules.