The Meteor FTSE® Monthly Contingent Income Plan is a maximum 10 year and 3 week investment that offers potential gross monthly income of 0.40% in option 1 and 0.60% for option 2.
You will lose money if the Final Level of the Index is below 65% 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 65% of its Opening Level you will get back the amount you invested.
Option 1: If the Closing Level of the Index on any Monthly Measurement Date is at least equal to 65% of its Opening Level, the Plan will pay a gross income of 0.40% for that month. No income will be payable for a month if the Closing Level of the Index is below 65% of its Opening Level on the Monthly Measurement Date.
Option 2: If the Closing Level of the Index on any Monthly Measurement Date is at least equal to 85% of its Opening Level, the Plan will pay a gross income of 0.60% for that month. No income will be payable for a month if the Closing Level of the Index is below 85% of its Opening Level on the Monthly Measurement Date.
The first Monthly Measurement Date will be on 27 February 2020, one 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 you would receive a full return of your money, 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 27 January 2022, two years after the Start Date.
The Securities purchased will be Notes issued by SG Issuer and guaranteed by Société Générale. These 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 Mapleis Limited, which is in turn linked to the performance of the Indices.
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
This product is an unsecured debt instrument governed by English law.
Société Générale, http://kid.sgmarkets.com, Call +33(0) 969 32 08 07 for more information
This product is designed to provide a conditional coupon on a periodic basis. It is possible for the product to be automatically redeemed early based on pre-defined conditions. If the product is not redeemed early, both the coupon and the capital redemption at maturity will be linked to the performance of the Reference Underlying. Your capital will be fully at risk when investing in this product.
Provided that the product has not been previously redeemed early:
– On each Coupon Observation Date, if the level of the Reference Underlying is at or above the Coupon Barrier, you will receive the Coupon on the payment date.
– Otherwise, you will not receive the Coupon.
Automatic Early Redemption
On any Early Redemption Observation Date, if the level of the Reference Underlying is at or above the Early Redemption Barrier, the product will be redeemed early and you will receive 100% of the Nominal Value.
On the Maturity Date, provided that the product has not been redeemed early, you will receive a final redemption amount.
– If the Final Level of the Reference Underlying is at or above the Capital Barrier, you will receive:
100% of the Nominal Value.
– Otherwise, you will receive the Final Level of the Reference Underlying multiplied by the Nominal Value. In this scenario, you will suffer a partial or total loss of your invested amount.
– The level of the Reference Underlying corresponds to its value expressed as a percentage of its Initial Value.
– The Initial Value of the Reference Underlying is its value observed on the Initial Observation Date.
– The Final Level is the level of the Reference Underlying observed on the Final Observation Date.
– Coupons are expressed as a percentage of the Nominal Value.
– Extraordinary events may lead to changes to the product’s terms or the early termination of the product and could result in losses on your investment
– The product is available through a public offering during the applicable offering period in the following jurisdiction(s): United Kingdom
The product is aimed at investors who:
– Have specific knowledge or experience of investing in similar products and in financial markets, and have the ability to understand the product and its risks and rewards.
– Seek a product offering income and have an investment horizon in line with the recommended holding period stated in the key information document.
– Are able to bear total loss of their investment and accept the risk that the Issuer and / or Guarantor could fail to pay the capital and any potential return.
– 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: 23 January 2020
ISA Transfer closing date: 09 January 2020
Other application form
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 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;
♦ Know that the levels 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 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.