When you invest in the Semi-Annual Step Down Kick-out Plan, you may receive an accumulated return of 3.15% for each six month period that has elapsed (equivalent to 6.3% per annum) depending on the performance of the FTSE 100 Index.
The full Investment Term is six and a half years, however, the Plan has the potential to mature early (kick-out) from 14 February 2022 and every six months thereafter.
If the FTSE 100 Index is at or above the required level on an anniversary date, the Plan will mature early (kick-out) and return your initial investment plus a defined return (as outlined on page 5 of the brochure).
The required kick-out level reduces each year from the third anniversary.
You will receive back significantly less than you initially invested if the Closing Level of the FTSE 100 Index is below 60% of its Initial Index Level on the Investment End Date.
The Counterparty for this Plan is Goldman Sachs International. If Goldman Sachs International were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the FTSE 100 Index.
Other Key Information
The product is in the form of a note issued under Cayman law. It is not an interest bearing security. The payment obligations of the product manufacturer are guaranteed by Goldman Sachs International.
Goldman, Sachs & Co. Wertpapier GmbH (see http://www.gspriips.eu or call +442070510101 for more information)
The product provides the potential for capital growth and does not pay interest. What you will receive at the end of the term of the product is not certain and will depend on the performance of the preference shares issued by GOLDMAN SACHS (CAYMAN) LIMITED (the preference shares). The performance of the preference shares is in turn linked to the performance of the FTSE 100 Index (the underlying asset). In addition, you will take the risk that some or all of the value of your investment may be lost at the end of the term of the product. The term of the product will end no later than August 21, 2026. However, the product may terminate early depending on the performance of the underlying asset. Each note has a face value of GBP 1. The issue price is 100.00% of the face value. The product will be listed on the Luxembourg Stock Exchange (Main Segment).
Autocall feature: If the closing price of the underlying asset on any autocall observation date is at or above the autocall barrier, the preference shares and the notes will terminate on the corresponding autocall payment date. In this case, you will receive the autocall payment shown below for each note that you hold.
Repayment at maturity:
This section applies only if no autocall occurs as described above.
On August 21, 2026, for each note that you hold:
1. If the closing price of the underlying asset on August 14, 2026 is at least equal to the barrier price, you will receive GBP 1.00; or
2. Otherwise, you will receive GBP 1.00 multiplied by (i) the closing price of the underlying asset on August 14, 2026 divided by (ii) the strike price of the underlying asset.
The initial reference price of the underlying asset is the closing price on February 14, 2020.
The strike price is 100.00% of the initial reference price. The barrier price is 60.00% of the initial reference price.
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 asset, the product and the product manufacturer. 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.
The product is intended to be offered to retail investors who:
♦ 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;
♦ seek capital growth, 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;
♦ accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product but otherwise are able to bear a total loss of their investment;
♦ 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; and
♦ are making use of professional advice.
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 and conditions 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: 07 February 2020
Stocks & Shares ISA Transfer closing date: 17 January 2020
Cash ISA Transfer closing date: 24 January 2020
Other application forms
When completing an Application Form for either a Company or Trust, Walker Crips also require the appropriate FATCA Addendum completed and submitted.
The two classifications for company investments are as follows;
The 3 classifications for investments from trusts are;
Is the Walker Crips Semi-Annual Step Down Kick Out Plan right for me?
This Plan may be right for you if:
♦ Understand the specific features and risks highlighted in the Plan documentation and are able to make an informed investment decision based on the information provided within the authorised documentation, including this brochure and the Key Information Document (KID);
♦ Understand how the Plan works and that your return will be based on pre-determined calculations;
♦ Understand that you will lose, and are able to withstand the loss of, more than 40% of your Initial Investment if the Final Index Level of the Index is below 60% of the Initial Index Level on the Investment End Date;
♦ Are looking for a potential return from your Initial Investment, payable at the end of the Investment Term, and do not require an income from your Initial Investment throughout the Investment Term;
♦ Understand that any potential return is determined by the Closing Level of the FTSE 100 Index at specified dates throughout the Investment Term;
♦ Understand that you will receive no return at all where the Final Index Level of the FTSE 100 Index is below 80% of the Initial Index Level;
♦ Are prepared to accept the Counterparty risk of Goldman Sachs International. If Goldman Sachs International defaults you understand that you could lose your Initial Investment and any potential returns due to you, and you will not have recourse to the FSCS;
♦ Understand the Investment Term and you will not need access to your Initial Investment for six and a half years. You have other readily accessible funds available to meet your immediate financial needs and for emergencies;
♦ Accept the possibility that the Plan may mature early if certain conditions are met;
♦ Understand that if the Index performs better than the maximum potential return offered by the Plan over the Investment Term, you may receive less than you would have received had you invested directly in the FTSE 100 Index;
♦ Have a positive view of the FTSE 100 Index performance over the next six and a half years;
♦ Have a minimum of £10,000 to invest.
This investment may not be right for you if:
♦ Are unable to make an informed investment decision based on the information provided within the authorised documentation, including this brochure and the Key Information Document (KID);
♦ Are unsure how the Plan works or how the potential returns are calculated;
♦ Cannot afford to put your Initial Investment at risk, or are uncomfortable in putting your Initial Investment at risk;
♦ Are not prepared to accept the Counterparty risk of Goldman Sachs International;
♦ Do not have other readily accessible funds available to meet your immediate financial needs and for emergencies;
♦ Are unable to commit to investing your Initial Investment for the six and a half year Investment Term;
♦ Would like to receive income from your Initial Investment during the Investment Term;
♦ Would like to add to your investment from time to time or at regular intervals over the Investment Term;
♦ Do not want your potential returns to be dependent on stock market performance;
♦ Do not have a positive view of the FTSE 100 Index performance over the next six and a half years