The Mariana S&P 500 Defensive Kick Out Plan is a maximum six year two week investment that offers potential growth of 7.9% p.a. subject to the performance of the S&P 500 Index.
This is a six year, two week Plan based on the performance of the S&P 500® Index, the Underlying Asset. The Plan is constructed to offer a Potential Return of 7.9% for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.
Should the Closing Price of the Underlying Asset on an Observation Date be at or above the Kick Out Trigger Level, the Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.
The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date.
If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (02 July 2029) the Closing Price of the Underlying is not more than 40% below the Start Level.
If on the Maturity Date the Closing Price of the Underlying Asset is less than 60% of the Start Level (representing a decline of more than 40% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.
The Counterparty chosen for this Plan is Citigroup Global Markets Limited (CGML), Citigroup Global Markets Funding Luxembourg S.C.A, an affiliate of CGML, 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 this Brochure.
Other Key Information
English Law governed notes
Citigroup Global Markets Limited (http://www.citigroup.com/). The product issuer is Citigroup Global Markets Funding Luxembourg S.C.A. with a guarantee by Citigroup Global Markets Limited.
The product is designed to provide a return in the form of a cash payment on the maturity date in an amount that depends on whether the underlying satisfies the barrier conditions specified below. 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 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:
- if the final reference level is at or above 85.00% of the initial reference level, a cash payment equal to GBP 1.474;
- otherwise, if the final reference level is at or above 60.00% of the initial reference level and below 85.00% of the initial reference level, a cash payment equal to GBP 1.00;
- otherwise, if the final reference level is below 60.00% of the initial reference level, a cash payment equal to (i) the product notional amount multiplied by (ii) (A) the final reference level divided by (B) the initial reference level.
Investors should note that the payments described above are based on the expected value of the preference shares. Therefore any return you may receive on the product depends directly on the value of the preference shares. As such, your return is only indirectly dependent on the underlying.
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 issuer may terminate the product, as applicable, early. These events are specified in the product terms and principally relate to the product and the issuer. The preference shares in turn contain provisions allowing the preference shares to be adjusted or terminated early in the case of certain exceptional events, in particular relating to the underlying. Any such adjustments or early termination are likely to affect the amount and timing of return you receive under the product, meaning the return (if any) that 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.
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 income and/or capital growth, expect the movement in the underlying to perform in a way that generates a favourable return, have an investment horizon of the recommended holding period specified below and understand that the product may terminate early;
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 directly to us.
Important Plan Dates
Closing Date: 23 June 2023
ISA Transfer closing date: 07 June 2023
Important Documents
> Plan Brochure – S&P 500 Defensive Kick Out Plan – June 2023
Application Forms
Other application forms
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Is the Mariana S&P 500 Defensive Kick Out 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 S&P 500 Index, the Underlying Asset.
♦ 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 growth payment and not an income payment.
♦ You can afford to leave your money invested for the full year 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.
♦ You are comfortable with the fact that the Plan may mature early (kick out).
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 S&P 500 Index, the Underlying Asset.
♦ 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 an income 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).