The MB Structured Investments UK Quarterly Conditional Income Plan (Y2 60) is a maximum 6 year and 3 week investment that offers potential gross income of 1.675% per quarter, subject to the performance of the FTSE 100 index.
You will lose money if the Final Level of the Index is below 60% of its Opening Level. The amount of your money that you would lose will be the percentage by which the Final Level of the Index is below its Opening Level. In extreme circumstances you could lose all of your money. If the Final Level of the Index is at least equal to 60% of its Opening Level you will get back the amount you invested.
If the Closing Level of the Index on any Quarterly Measurement Date is at least equal to 75% of its Opening Level, the Plan will pay a gross income of 1.675% for that quarter. No income will be payable for a quarter if the Closing Level of the Index is below 75% of its Opening Level on the Quarterly Measurement Date.
The first Quarterly Measurement Date will be one quarter after the Start Date. Thereafter, the performance of the Index will be measured quarterly. If the kick-out condition is met (see below), income will be paid in respect of that quarter and the Plan will mature early. No further income payments will then be payable.
From year 2, the Plan will kick-out, i.e. mature early, if the Closing Level of the Index is equal to or above its Opening Level on any Annual Measurement Date. In this event you would receive a full return of your money, as well as the income due for that quarter. The first Annual Measurement Date on which an early maturity could be triggered will be two years after the Start Date.
The Securities purchased will be Notes issued by Barclays Bank plc. These Securities can be viewed in a similar way to a loan to the Issuer and are linked to the performance of the index.
It is possible that the Counterparty could collapse or fail to make the payments due from the Plan. If this happened, the investor would lose some, or all, of the money they invest in the Plan, as well as, any income payments to which they might otherwise have become entitled.
It is MB Structured Investment’s understanding that any income payments from a direct investment by individuals or Trusts into this Plan are expected to be subject to Income Tax.
Other Key Information
English law governed notes
Barclays Bank PLC (www.barx-is.com) Call +44 (0) 20 7116 9000 for more information.
The product is designed to provide a return in the form of a cash payment on termination of the product. The timing and amount of this payment will depend on the change in value of the preference shares, which in turn will depend on the performance of the underlying. The product has a fixed term and will terminate on the maturity date, unless terminated early. 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.
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 autocall barrier level. On any such early termination, you will on the immediately following autocall payment date receive, in addition to any final interest payment, a cash payment equal to the autocall payment of GBP 1. No interest payments will be made on any date after such autocall payment date. The relevant dates are shown in the table(s) in the key information document.
Interest: If the product has not terminated early, on each interest payment date you will receive an interest payment of GBP 0.0167 if the reference level is at or above the interest barrier level on the immediately preceding interest observation date. 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) in the key information document.
Termination on the maturity date: If the product has not terminated early, 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; 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.
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 product issuer may terminate the product, as applicable, early. These events are specified in the product terms and principally relate to the product and the product 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.
For display purposes numbers within this document have been cut off at 4 decimal places.
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 in the key information document and understand that the product may terminate early;
3. they accept the risk that the issuer 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
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 of business 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: 21 April 2023
ISA Transfer closing date: 05 April 2023
> Plan Brochure – UK Quarterly Conditional Income Plan (Y2 60) – April 2023
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Is the MB Structured Investments UK Quarterly Conditional Income Plan (Y2 60) right for me?
A typical investor who invests in this Plan will:
♦ Be either an Informed or Advanced Investor, with appropriate knowledge and experience of equity- based investments;
♦ Like investments that provide known returns based on pre-determined market outcomes;
♦ Want the potential to secure an investment return above that available from a deposit-based investment and acknowledge and accept the level of risk, identified by the Summary Risk Indicator set out in the Key Information Document (KID);
♦ Understand that any income is dependent on the performance of the Index, which is calculated on set dates, and accept that they might not get any income at all;
♦ Be willing and able to tie up their money for the term of the Plan for the objective of income;
♦ Accept that they would lose money and be able to afford to do so;
♦ Understand that in the event of a loss that this loss would be at least 40% of the money they put into the Plan, and could be considerably more, and in extreme circumstances they could lose all of their money;
♦ Know that the level of the Index can fall but do not expect the fall to be more than 40% of its Opening Level at the Final Measurement Date;
♦ Appreciate the importance of having a spread of investments to reduce concentration risk;
♦ Know and accept that inflation reduces the real value of money and what it can buy;
♦ Understand that equity markets are affected by economic and political events nationally and globally;
♦ Accept that if the Counterparty defaults they could lose all their money and any investment return and that they would not have any recourse to the FSCS.
The information provided on this page is not investment advice or an investment recommendation. It is designed to provide some guidance as to the possible future risks and rewards of this Plan.