The Investec FTSE 100 Defensive Income Plan (Option 1) is designed to provide regular income payments and to return your initial investment after 8 years, or earlier if the Plan matures early.
On any Quarterly Income Date::
♦ If the Payment Index Level is higher than 60% of the Initial Index Level, you will receive an income payment of 1.22%.
♦ If the Payment Index Level is equal to or lower than 60% of the Initial Index Level, no income payment will be made for that quarter.
Early Maturity (Kick-Out)
On any Kick-Out Date:
♦ If the Kick-Out Level is higher than 105% of the Initial Index Level, the Plan will mature early (Kick-Out) and you will receive back your initial investment. You will also receive a final income payment for the Quarterly Income Date that coincides with the Kick-Out Date.
♦ If the Kick-Out Level is equal to or lower than 105% of the Initial Index Level, the Plan will continue.
If the plan runs for the full 8 years
On the Final Maturity Date, the Final Index Level is recorded. The Final Index Level is the average of the closing levels of the FTSE 100 on the Final Maturity Date and the four previous Business Days.
♦ If the Final Index Level is higher than or equal to 60% of the Initial Index Level, you will receive back your initial investment with no return.
♦ However, if the Final Index Level is lower than 60% of the Initial Index Level, you will receive back your initial investment minus 1% for every 1% fall in the FTSE 100 (including partial percentages). For example, if the Final Index Level is 55% lower than the Initial Index Level then your initial investment will be reduced by 55%.
Other Key Information
The FTSE 100 Defensive Income 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 quarterly income payments linked to the performance of the 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, depending on the performance of the Underlying.
At the end of each quarter, if the Underlying is above 60% of its starting level, this product will pay you an income payment of 1.22%. If the Underlying is equal to or below 60% of its starting level the income payment for that quarter will be missed.
Early Maturity (Kick Out)
This product will “Kick Out” at the end of any year from the 2nd year onwards, returning your initial investment plus an income payment of 1.22%, if the Underlying is above 105% 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 equal to or above 60% of its starting level, the product will return your initial investment. If the Underlying is above 60% of its starting level, you will also receive a final income payment of 1.22%.
♦ 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 contingent income over a term of 8 years but can accommodate receiving their money back before the end of the term. Investors will have a medium-low 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
Additionally, investors will have knowledge and understanding of this structured product and experience of financial markets.
Please ensure that you have read and understood the important documents contained on this page.
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: 31 January 2020
ISA Transfer closing date: 17 January 2020
Other application forms
Is the Investec FTSE 100 Defensive Income 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 a Plan where payments are made depending on the performance of stock markets.
♦ 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 via 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.