The Meteor FTSE® Defensive Kick Out Plan is a maximum 6 year and 3 week investment that offers potential growth payment of 9% (Option 1) or 8.75% (Option 2) for each year the plan runs.
Option 1: 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.
Option 2: You will lose money if the Final Level of the Index is below 60% of its Opening Level. 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.
In both cases, 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 Closing Level of the Index on any Measurement Date before the Final Measurement Date is at least equal to its Reference Level the Plan will kick out, i.e. mature early, and make a gross investment return of 9.25% of the money you invest for each year that the Plan has been in force. The first Measurement Date will be one year after the Start Date.
For both Options: The first Measurement Date will be one year after the Start Date. If the Closing Level of the Index on any Measurement Date before the Final Measurement Date is at least equal to its Reference Level the Plan will kick out, i.e. mature early, and make a gross investment return.
For Option 1 The investment return, if triggered, would be 9% of the money you invest for each year that the Plan has been in force.
For Option 2 The investment return, if triggered, would be 8.75% of the money you invest for each year that the Plan has been in force.
If the Plan has not matured early, and the Closing Level of the Index on the Final Measurement Date (the ‘Final Level’) is at least equal to its Reference Level, the Plan will provide an investment return at the Maturity Date equal to:
♦ 54% of the money you invest for Option 1
♦ 52.50% of the money you invest for Option 2
If the Final Level of the Index is below its Reference Level, neither option will provide an investment return at the Maturity Date.
The Securities purchased will be Notes issued by Credit Agricole CIB. The Securities can be viewed in a similar way to a loan to the Issuer and are linked to the performance of Preference Shares issued by Broadwalk Investments Limited, which is in turn linked to the performance of the Index.
It is Meteors understanding that any income payments from a direct investment by individuals or Trusts into this Plan are 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, which performance depends on the performance of an underlying reference value. The product bears a risk of losing some or all of the capital.
Crédit Agricole CIB
To receive a single payment on the Maturity Date or on any earlier Payment Date on which the product terminates in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest.
The amounts you will receive depend directly on the performance of the Underlying(s) and are determined by referencing the performance of Preference Shares which are directly linked to the Underlying(s). Therefore, for ease of explanation of the objectives of the product, the product is described in this document as being linked to 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 Bonus Amount corresponding to such Autocall Valuation Date on the immediately following Payment Date. No further payments will be made following such payment and early redemption.
Redemption 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 the last Autocall Barrier Level, you will receive, in addition to the Nominal Amount, the Bonus Amount corresponding to the Final Valuation Date.
– If the Final Underlying Performance is lower than the last Autocal Barrier Level 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 Final 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 Manufacturer of the product (which may include the discontinuation of the Manufacturer’s ability to carry out the necessary hedging transactions)), 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 clients who:
• have significant knowledge and experience in products such as the one described in the key information
• are willing and able to bear a potentially total loss
• have a risk tolerance consistent with the summary risk indicator in the key information document
• are expressing a view on the underlying consistent with the conditions for a positive outcome (as stated in the product description)
• have a horizon consistent with the term of this product
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?
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: 11 October 2023
ISA Transfer closing date: 27 September 2023
Important Documents
> Plan Brochure – FTSE Defensive Kick Out Plan – October 2023
Application Forms
Other application form
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Is the Meteor FTSE Defensive Kick Out Plan 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);
♦ 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% (Option 1) or 40% (Option 2) 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 Index, 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% (Option 1) or 40% (Option 2) 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.
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.