The Meteor FTSE®/STOXX Quarterly Contingent Income Plan is a maximum 10 year and 3 week investment that offers potential gross income of 2.03% per quarter.
The return of capital and payment of any income are linked to the performance of the FTSE 100 Index and the EURO STOXX 50 Index (each an ‘Index’, collectively the ‘Indices’).
This is a capital-at-risk product. The investor will lose some, or all, of their money if the Final Level of the lower performing Index is below 65% of its Opening Level. The amount the investor would lose will equal the percentage that the Final Level of the lower performing Index is below its Opening Level.
If the Closing Levels of both Indices on any Quarterly Measurement Date are at least equal to 80% of their Opening Levels, the Plan will pay a gross income of 2.03% for that quarter. No income will be payable for a quarter if the Closing Levels of one or both Indices are below 80% of their Opening Levels on the Quarterly Measurement Date.
The first Quarterly Measurement Date will be on 17 February, 3 months after the Start Date. Thereafter, the performance of the Indices will be measured quarterly.
If the kick-out condition is met (see below), income will be paid in respect of that quarter and the Plan will mature early. No further quarterly payments will then be payable.
From year 2, the Plan will kick-out, i.e. mature early, if the Closing Levels of both Indices are at least equal to their Opening Levels 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 quarter. The first Quarterly Measurement Date on which an early maturity could be triggered will be on will be on the 15 November 2021, two years after the Start Date.
The Securities for this Plan will be issued by 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 (http://sp.morganstanley.com/)
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 underlyings. The product has a fixed term and will terminate on the maturity date, unless terminated early. If, at maturity, the worst performing underlying has fallen below its 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 of the worst performing underlying is at or above its 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 0.0203 if the reference level of the worst performing underlying is at or above its 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 of the worst performing underlying is at or above its barrier level, a cash payment equal to GBP 1,000.00; or
2. if the final reference level of the worst performing underlying is below its barrier level, a cash payment directly linked to the performance of the worst performing underlying. The cash payment will equal (i) the product notional amount multiplied by (ii) (A) the final reference level of the worst performing underlying divided by (B) its 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 underlyings, 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.
When purchasing this product during its lifetime, the purchase price may include accrued interest on a pro rata basis
The product is intended to be offered to retail investors who fulfil all of the crtieria below:
♦ they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, with experience of investing in and/or holding a number of similar products providing a similar market exposure, either independently or through professional advice;
♦ they seek income, expect the movement in the underlying to perform in a way that generates a favourable return, have an investment horizon of the recommended holding period specified in the key information document and understand that the product may terminate early;
♦ they accept the risk that the issuer could fail to pay or perform its obligations under the product and they are able to bear a total loss of their investment; and
♦ they 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.
The product is not intended to be offered to retail clients who do not fulfil these criteria
Please ensure you have read and understood the important documents contained on this page before investing.
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: 13 November 2019
ISA Transfer closing date: 30 October 2019
Other application form
Is the Meteor FTSE/STOXX Quarterly 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 and accept the level or risk, identified by the Summary Risk Indicator set out in the Key Information Document (KID);
♦ Understand that any income is dependent on the performance of the Indices, 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 Indices can fall but do not expect the fall to be more than 35% of their respective Opening Levels 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.
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.