The Meteor FTSE® Monthly Contingent Income Plan is a maximum 10 year and 3 week investment that offers potential gross monthly income of 0.4167%.
The return of capital and payment of any income are linked to the performance of the FTSE 100 Index (the ‘Index’).
This is a capital-at-risk product. The investor will lose some, or all, of their money if the Final Level of the Index is below 60% of its Opening Level. The amount the investor would lose will equal the percentage that the Final Level of the Index is below its Opening Level.
If the Closing Level of the Index on any Monthly Measurement Date is at least equal to 60% of its Opening Level, the Plan will pay a gross income of 0.4167% for that month. No income will be payable for a month if the Closing Level of the Index is below 60% of its Opening Level on the Monthly Measurement Date.
The first Monthly Measurement Date will be on 25 February 2019, 1 month after the Start Date. Thereafter, the performance of the Index will be measured monthly.
If the kick-out condition is met (see below), income will be paid in respect of that month 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 at least 5% above its Opening Level on any Quarterly Measurement Date. In this event the investor would receive a full return of the money invested as well as the income due for that month. The first Quarterly Measurement Date on which an early maturity could be triggered will be on 25 January 2021, two years after the Start Date.
The Securities purchased will be Global Medium Term Notes issued by Citigroup Global Markets Funding Luxembourg S.C.A., and guaranteed by Citigroup Global Markets Limited. Citigroup Global Markets Limited currently has a credit rating of ‘A+’ from Standard and Poor’s, as at 16 November 2018.
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 Meteors 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
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 (1) conditional interest payments and (2) a cash payment on termination of the product. The timing and amount of these payments 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 underlying has fallen to or 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 1,000.00. No interest payments will be made on any date after such autocall payment date.
Interest: If the product has not terminated early, on each interest payment date you will receive an interest payment of GBP 4.167 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.
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 above the barrier level, a cash payment equal to GBP 1,000.00; or
2. if the final reference level is at or 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.
Under the product terms, certain dates specified 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 early. These events are specified in the product terms and principally relate to the underlying, the product and the product issuer. The return (if any) 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.
This product is intended for investors who:
♦ have income objectives;
♦ 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.
Potential Investors should ensure they have read and understood the important documents contained on this page.
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
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 (Cheques): 15 January 2019
Closing Date (Bank Transfers): 21 January 2019
ISA Transfer closing date: 07 January 2019
Other application form
How do I invest?
Please print and complete your application form together with our appropriateness questionnaire. Please send your completed forms to us at Moneyworld, 34 High Street, High Wycombe, Bucks, HP11 2AG.
Is the Meteor FTSE Monthly Contingent Income 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 the 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 producing 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 levels 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 that they could lose all their money and any income 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.