The Meteor FTSE Quarterly 85 Income Kick Out Plan (MS8203) is a maximum 9 year and 3 week investment that offers potential quarterly gross income of 1.89%.
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.
The plan starts on the Start Date and the first quarterly measurement date is 3 months after this. Income equal to 1.89% of the money invested will become payable on each Income Measurement Date where the level of the Index is at or above 85% of its Start Level. This barrier level is called the Income Barrier.
In addition to the above, if on any quarterly Kick Out Measurement Date from the end of year 2, the level of the Index is at or above 100% of its Start Level, the plan will end early. This is called a Kick Out and this barrier level is called the Kick Out Barrier.
You will get all of your invested money back on a Kick Out; or, at the End Date if the End Level of the Index is at or above 65% of its Start Level. This barrier level is called the Loss Barrier.
The counterparty on this plan is Morgan Stanley & Co International PLC. 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
Morgan Stanley & Co. International plc (https://sp.morganstanley.com/EU/)
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 final reference level of the underlying has fallen 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. The relevant dates are shown in the table(s) in the key information document.
Interest: If the product has not terminated early, on each interest payment date you will receive an interest payment of GBP 20.30 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. The relevant dates 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 the barrier level, a cash payment equal to GBP 1,000.00; or
2. if the final reference level is 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 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 early. These events are specified in the product terms and principally relate to the underlying, the product and the 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.
When purchasing this product during its lifetime, the purchase price may include accrued interest on a pro rata basis. You do not have any entitlement to a dividend from the underlying and you have no right to any further entitlement resulting from the underlying (e.g., voting rights).
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, 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 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 4 out of 7 to achieve potential returns, which reflects a medium 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: 14 February 2024
ISA Transfer closing date: 31 January 2024
Other application form
Is the Meteor FTSE Quarterly 85 Income Kick Out Plan – February 2024 – MS8203 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 producing income;
♦ 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 income payment is dependent on the performance of the Index, which is calculated on set dates, and accept they might not get any income 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 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.
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.