The Mariana FTSE 100 Income Builder Plan is a six year investment that offers potential income based on the level of the FTSE 100 Index.
This is a six year Plan based on the performance of the FTSE™ 100 Index, the Underlying. The Plan is constructed to offer a Potential Income of 2.30% for each Observation Period the Plan runs. The Potential Income is dependent on the end of week closing price of the Underlying being both above the Downside Barrier and below the Upside Barrier. It is calculated as follows: 2.30% x (the number of times the end of week closing price of the Underlying is within The Range divided by the number of end of week observations in the Observation Period). If the Closing Price of the Underlying is outside of The Range on every final day of the week during the Observation Period, no income payment is paid for that Observation Period.
Initial Capital will be returned in full at the end of the Plan’s term if on the Maturity Date the Finish Level of the Underlying is not more than 40% below the Start Level. You are at risk of losing your capital if the Closing Price of the Underlying is less than 60% of the Start Level (representing a decline of more than 40% from the Start Level). In this case, your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying is below the Start Level.
The Counterparty chosen for this Plan is Morgan Stanley. Morgan Stanley B.V., an affiliate of Morgan Stanley, is the issuer of the underlying investments that are purchased on your behalf with the money you have invested. The investments are constructed to generate the terms described in the Brochure.
Other Key Information
English Law Governed Notes
Morgan Stanley & Co. International plc (http://sp.morganstanley.com/). The product issuer is Morgan Stanley BV with a guarantee by Morgan Stanley.
The product is designed to provide a return in the form of (1) conditional interest payments and (2) a cash payment on the maturity date. The amount of these payments will depend on the performance of the underlying. The product has a fixed term and will terminate on the maturity date. If, at maturity, the final reference level of the underlying has fallen below the barrier level, the product may return less than the product notional amount or even zero.
Interest: On each interest payment date you will receive an interest payment of (i) GBP 23 multiplied by the number of observation dates during the relevant interest period in which the reference rate is above the lower range level and below the upper range level, divided by (ii) the total number of observation dates in the period. If this condition is not met, you will receive no interest payment on such interest payment date. The relevant dates are shown in the table(s) on the key information document.
Termination on the maturity date: On termination of the product on the maturity date you will receive:
1. if the final reference level is at or above the barrier level, a cash payment equal to GBP 1,000; or
2. if the final reference level is below the barrier level, a cash payment directly linked to the performance of the underlying. The cash payment will equal (i) the product notional amount multiplied by (ii) (A) the final reference level divided by (B) the strike level.
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 underlying, 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.
When purchasing this product during its lifetime, the purchase price may include accrued interest on a pro rata basis.
You do not have any entitlement to a dividend from the underlying and you have no right to any further entitlement resulting from the 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 basic knowledge and/or experience of investing in similar products which provide a similar market exposure and have the ability to understand the product and its possible risks and rewards, either independently or through professional advice;
2. they seek income, expect the movement in the underlying to perform in a way that generates a favourable return and have an investment horizon of the recommended holding period specified in the key information document;
3. they accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product and they are able to bear a total 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 and Key Information Documenbt 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: 17 February 2023
ISA Transfer closing date: 01 February 2023
Important Documents
> Plan Brochure – FTSE 100 Income Builder Plan – February 2023
Application Forms
Other application forms
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Is the Mariana FTSE 100 Income Builder Plan right for you?
This investment may be right for you if:
♦ You have either received advice or a financial adviser has confirmed that this investment is appropriate for you.
♦ You understand the risk associated with investing in this Plan (see page 15 of the brochure for more information).
♦ You are able to make an informed decision based on the information provided in the Brochure and in the Issuer’s Key Information Document (KID).
♦ You understand that the returns are pre-defined and that you will forgo any growth in the Underlyings which exceeds the returns defined in the Brochure.
♦ You are comfortable that you are making an investment into a Plan that has a term of six years, two weeks.
♦ You are comfortable that the Plan’s returns are linked to the performance of the FTSE™ 100, the Underlying.
♦ You are comfortable that any Potential Return and the repayment of your Initial Capital is dependent on the continuing solvency of the Counterparty.
♦ You are comfortable that your capital is at risk and you could lose some and up to all of your investment.
♦ You are looking to invest in a Plan that offers a potential income payment.
♦ You can afford to leave your money invested for the full term of the Plan.
♦ You have other savings or investments that are easily accessible to cover emergencies.
♦ You understand how the Plan works.
♦ You have at least £10,000 to invest.
This investment may not be right for you if:
♦ You have not received advice or a financial adviser has not confirmed that this investment is appropriate for you.
♦ You do not understand the risk associated with investing in this Plan (see page 15 of the brochure for more information).
♦ You are not able to make an informed decision based on the information provided in the Brochure and in the Issuer’s Key Information Document (KID).
♦ You do not understand that the returns are pre-defined and that you will forgo any growth in the Underlyings which exceeds the returns defined in the Brochure.
♦ You are not comfortable that you are making an investment into a Plan that has a term of six years, two weeks.
♦ You are not comfortable that the Plan’s returns are linked to the performance of the FTSE™ 100, the Underlying.
♦ You are not comfortable that any Potential Return and the repayment of your Initial Capital is dependent on the continuing solvency of the Counterparty.
♦ You are not comfortable that your capital is at risk and that you could lose some and up to all of your investment.
♦ You are looking to invest in a Plan that offers a growth payment.
♦ You cannot afford to leave your money invested for the full term of the Plan.
♦ You do not have other savings or investments that are easily accessible to cover emergencies.
♦ You are unsure how the Plan works.
♦ You do not have at least £10,000.
♦ You are not comfortable with the fact that the Plan may mature early (kick out).