The Meteor FTSE Annual Step Down to 65 Kick Out Plan is a maximum seven year three week investment offering a potential gross return of 7.50% for each year the plan runs, subject to the performance of the FTSE 100 index.
Repayment of Capital;
You will lose money if the Final Level of the Index is below 65% of its Opening Level. If the Final Level of the Index is at least equal to 65% of its Opening Level you will get back the amount you invested.
The first Measurement Date will be two years after the Start Date. if the level of the Index is at or above a defined percentage of its Start Level, the plan will end early and pay Growth equal to 7.50% of the money invested for every year the plan has been in force. This is called a Kick Out and the barrier levels are called the Kick Out Barriers.
If the plan never Kicks Out and reaches the End Date, the Index will be measured for the last time. If the End Level of the Index is at or above 65% of its Start Level, the plan will pay Growth equal to 52.50% of the money invested, otherwise, no Growth will be achieved.
The Counterparty to this plan is Citigroup Global Markets Limited in its capacity as guarantor to the issuer of the financial contracts, Citigroup Global Markets Funding Luxembourg S.C.A.. If the Counterparty’s ability to pay its financial obligations deteriorates significantly, customers’ money, regardless of how the plan is performing at the time, will be at risk of not being paid back in full. Customers will not be entitled to compensation from the Financial Services Compensation Scheme (FSCS) in this event.
It is Meteor’s understanding that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Capital Gains Tax.
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) 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 65.00% of the initial reference level, a cash payment equal to GBP 1.525;
2. otherwise, if the final reference level is below 65.00% 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 positive return. They have a long investment horizon and understand that the product may terminate early;
3. they are able to bear a total loss of their initial investment, consistent with the redemption profile of the product at maturity (market risk);
4. they accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product irrespective of the redemption profile of the product (credit risk);
5. they are willing to accept a level of risk of 5 out of 7 to achieve potential returns, which reflects a medium-high risk (as shown in the summary risk indicator in the key information document which takes into account both market risk and credit risk).
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 directly to us.
Important Plan Dates
Closing Date: 17 January 2024
ISA Transfer closing date: 03 January 2024
Other application form
Is the Meteor FTSE Annual Step Down to 65 Kick Out Plan right for me?
A typical investor who invests in this Plan will:
♦ Be 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);
♦ Be willing and able to tie up their money for the term of the Plan for the objective of capital growth;
♦ Accept that they could 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 35% of the money they put into the Plan, and could be considerably more, and in extreme circumstances they could lose all of their money;
♦ Understand that any investment return is dependent on the performance of the Indices, which is calculated on set dates, and accept they might not get any investment return at all;
♦ Know that the level of the Index can fall but do not expect the fall to be more than 35% 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.
An investor will not meet the target market criteria if:
♦ They do not understand how this investment works;
♦ They are unable, or unwilling, to accept the risks associated with this Plan, including the loss of their money;
♦ The Plan does not meet their investment objectives.