The Investec FTSE 100 Defensive Step Down Kick Out Plan is designed to repay your initial investment and deliver a return dependent on the performance of the FTSE 100.
If at the end of years 2, 3, 4, 5 or 6 the FTSE 100 is higher than a specified percentage of its starting level, the Plan will mature returning your initial investment plus a fixed payment equal to 6.5% per annum (not compounded).
The below table shows the levels that the FTSE 100 needs to exceed for the Plan to Kick-Out or pay a return.
| Year | % of the index's starting level | Return |
|---|---|---|
| 2 | 100% | 13% |
| 3 | 95% | 19.5% |
| 4 | 85% | 26% |
| 5 | 75% | 32.5% |
| 6 | 65% | 39% |
However, if the Plan runs for the full 6 years and at the end of year 6, 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 at the end of the Plan Term.
For further details on how Investec calculate your returns, which includes the use of averaging, please see ‘How does the Plan work?’ on page 6 of the brochure.
Other Key Information
The FTSE 100 Defensive Step Down 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 6 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 2nd year onwards, returning your initial investment as well as 6.5% (not compounded) for every year that has elapsed since the Start Date, provided that the Underlying is above a reducing percentage of its starting level. These percentages are 100%, 95%, 85%, 75%.
Maturity After 6 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 65% of its starting level, the product will return your initial investment plus 39%
♦ If the Underlying is equal to or below 65% 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 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
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: 16 January 2019
ISA Transfer closing date: 21 December 2018
Important Documents
> Plan Brochure – FTSE 100 Defensive Step Down Kick Out Plan 16
Application Forms
> Appropriateness Questionnaire
(Please complete and return with your application form)
> Direct and ISA Application Form
(Also use for re-investing matured Investec plans)
Other application forms
> Self Certification Form
(To be completed for company or charity applications)
How do I invest?
Please print and complete your application form together with our appropriateness questionnaire. Please send your completed forms to us at Moneyworld, 34 High Street, High Wycombe, Bucks, HP11 2AG.
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Is the Investec FTSE 100 Defensive Step Down Kick Out Plan right for you?
This investment may be right for you if:
♦ 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 do not need access to your money over the next 6 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.
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 may need immediate access to your money before maturity.
♦ You cannot commit to the full 6 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.
This Plan has been designed for investors who are looking to potentially achieve a high level of growth over a 6 year period, but can accommodate receiving their money back before the end of the term.
Investors will have a medium appetite for risk and are prepared to risk their capital in order to potentially achieve higher returns.
Investors will understand that the potential returns of this Plan are linked to the performance of the FTSE 100.