The Meteor FTSE Annual Step Down to 80 Kick Out Plan (Natixis) is a maximum seven year three week investment offering a potential gross return of 7.5% 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 7.5% 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 80% of its Start Level, the plan will pay Growth equal to 52.5% of the money invested, otherwise, no Growth will be achieved.
The Counterparty to this plan is Natixis in its capacity as guarantor to the issuer of the financial contracts, Natixis Structured Issuance SA. 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
The product is in the form of a debt instrument governed by English law linked to the performance of equity index-linked preference shares issued by Cannon Bridge Capital Ltd., which are in turn linked to the performance of the Underlying(s)
Natixis (Issuer: Natixis Structured Issuance / Guarantor: Natixis)
To provide capital growth in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest. Investors should note that the payments described below 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(s).
Autocall Event: if the Underlying Performance is greater than or equal to the relevant Autocall Barrier Level on any Autocall Valuation Date, the product will be redeemed early and you will receive, in addition to the Nominal Amount, an amount equal to the Interest Amount corresponding to the Interest Amount per period on the immediately following Payment Date. No further payments of principal or interest will be made following such payment and early redemption.
Redemption amount on the Maturity Date:
If the product is not redeemed early, then you will receive one of the following:
If a Barrier Event has NOT occurred:
– If the Final Underlying Performance is greater than or equal to -20%, you will receive in addition to the Nominal Amount, the Interest Amount corresponding to the Interest Amount per period.
– If the Final Underlying Performance is lower than -20%, you will receive the Nominal Amount.
Otherwise, you will receive an amount equal to the Nominal Amount diminished by an amount equal to the Nominal Amount multiplied by the absolute value of the Final Underlying Performance. The amount paid in such case will be less than the Nominal Amount and you may lose some or all of your capital.
Early redemption and adjustments
The terms of the product provide that if certain defined events, in addition to those described above, occur (principally but not exclusively in relation to any Underlying, or the Issuer of the product (which may include the discontinuation of the Issuer’s ability to carry out the necessary hedging transactions) or the Issuer of the preference shares), adjustments may be made to the terms of the product to account for the relevant event or the product may be early redeemed. The amount paid on any early redemption may be less than the amount originally invested.
This product is intended for retail investors who:
• have capital growth objective
• are willing and able to bear a total capital loss and accept the credit risk of the Issuer and the Guarantor
• have a risk tolerance consistent with the summary risk indicator in the key information document
• have significant knowledge and experience in products such as the one described in the key information document
• have a minimum investment horizon consistent with the recommended holding period
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: 06 March 2024
ISA Transfer closing date: 21 February 2024
Other application form
Is the Meteor FTSE Annual Step Down to 80 Kick Out Plan (Natixis) 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.