The Meteor FTSE Super Step Down Kick Out Plan is a maximum seven year two week investment offering a potential gross investment return of 6% from year 1.
The capital and investment return are linked to the performance of the FTSE 100 Index (the ‘Index’).
The Securities purchased will be issued by Credit Suisse
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 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 6% of the money invested for each year that the Plan has been in force.
The first Measurement Date will be on 18 May 2020 one year after the Start Date.
The Reference Levels are as follows: year 1 at 105%; year 2 at 100%; year 3 at 95%; year 4 at 90%; year 5 at 85%; year 6 at 80% and year 7(Final Level) at 65%.
If the Plan matures early on a Measurement Date, the investment return payable will be: 6% at year 1; 12% at year 2; 18% at year 3; 24% at year 4, 30% at year 5 and 36% at year 6.
If the Closing Level of the Index on any Measurement Date before the Final Measurement Date is below its Reference Level, no investment return will be made and the Plan will remain in force.
If the Final Level of the Index is at least equal to 65% of its Opening Level, the Plan will make an investment return at the Maturity Date equal to 42% of the money invested in the Plan. If the Final Level of the Index is below 65% of its Opening Level, no investment return will be payable at the Maturity Date.
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 investment return to which they might otherwise have become entitled.
It is Meteors understanding that any investment return from this Plan will be subject to Capital Gains Tax.
Other Key Information
English law governed notes
Credit Suisse International (www.credit-suisse.com/derivatives). The product issuer is Credit Suisse AG, acting through its London Branch.
The product is designed to provide a return in the form of a cash payment on termination of the product. The timing and amount of this payment will depend on the change in value of the preference shares, which in turn will depend on the performance of the underlying. The product has a fixed term and will terminate on the maturity date, unless terminated early. The payment at maturity will not exceed GBP 1.42. If, at maturity, the underlying has fallen below 60.00% of the initial reference 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 relevant autocall barrier level. On any such early termination, you will on the immediately following autocall payment date receive a cash payment equal to the applicable autocall payment. The relevant dates, autocall barrier levels and autocall payments are shown 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 65.00% of the initial reference level, a cash payment equal to GBP 1.42;
2. if the final reference level is at or above 60.00% of the initial reference level and below 65.00% of the initial reference level, a cash payment equal to GBP 1.00; or
3. if the final reference level is below 60.00% of the initial reference 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 initial reference level.
Investors should note that the payments described above are based on the expected value of the preference shares. Therefore any return you may receive on the product depends directly on the value of the preference shares. As such, your return is only indirectly dependent on the underlying.
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 product issuer may terminate the product, as applicable, early. These events are specified in the product terms and principally relate to the product and the product issuer. The preference shares in turn contain provisions allowing the preference shares to be adjusted or terminated early in the case of certain exceptional events, in particular relating to the underlying. Any such adjustments or early termination are likely to affect the amount and timing of return you receive under the product, meaning the return (if any) that 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 capital growth objectives;
♦ are willing and able to bear a total capital loss and accept the credit risk of the Issuer.
♦ have a risk tolerance consistent with the summary risk indicator in the Key information document;
♦ have sufficient 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.
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
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 May 2019
ISA Transfer closing date: 30 April 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 Super Step Down Kick Out Plan right for me?
A typical investor who invests in this Plan will:
♦ Be an Informed 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);
♦ Be willing and able to tie up their money for the term of the Plan for the objective of capital growth;
♦ 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;
♦ 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 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 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.