When you invest in the UK Defensive Annual Kick-out Plan (CA059), you may receive an accumulated return of 7.5% for each year the plan runs, subject to the performance of the FTSE 100 Index.
The full Investment Term is seven years, however, the Plan has the potential to mature early (kick-out) from the end of year 2 and annually thereafter.
If the Index is at or above the required kick-out level on an Anniversary Date, the Plan will mature early (kick-out) and repay your Initial Investment plus a defined return (as outlined on page 5 of the brochure).
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 Credit Agricole CIB. If Credit Agricole CIB were to fail or become insolvent, you could lose some or all of your Initial 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 debt instrument, governed by English law, which performance depends on the performance of an underlying reference value. The product bears a risk of losing some or all of the capital invested.
Crédit Agricole CIB
To receive a single payment on the Maturity Date or on any earlier Payment Date on which the product terminates in return for the risk of loss of capital. Amounts stated below are in respect of each Nominal Amount that you invest.
The amounts you will receive depend directly on the performance of the Underlying(s) and are determined by referencing the performance of Preference Shares which are directly linked to the Underlying(s). Therefore, for ease of explanation of the objectives of the product, the product is described in this document as being linked to the Underlying(s).
• Autocall Event: If the Underlying Performance is greater than or equal to the relevant Autocall Barrier Level on any Autocall Valuation Date, the product will be redeemed early and you will receive, in addition to the Nominal Amount, an amount equal to the Bonus Amount corresponding to such Autocall Valuation Date on the immediately following Payment Date. No further payments will be made following such payment and early redemption.
• Redemption on the Maturity Date:
o Redemption Amount: If the product is not redeemed early, then you will receive one of the following:
▪ If a Barrier Event has NOT occurred:
o If the Final Underlying Performance is greater than or equal to the last Autocall Barrier Level, you will receive, in addition to the Nominal Amount, the Bonus Amount corresponding to the Final Valuation Date.
o If the Final Underlying Performance is lower than the last Autocall Barrier Level, you will receive the Nominal Amount.
▪ Otherwise, you will receive an amount equal to the Nominal Amount diminished by an amount equal to the Nominal Amount multiplied by the Final Performance. The amount paid in such case will be less than the Nominal Amount and you may lose some or all of your capital.
Early redemption and adjustments
The terms of the product provide that if certain defined events, in addition to those described above, occur (principally but not exclusively in relation to any Underlying, or the Manufacturer of the product (which may include the discontinuation of the Manufacturer’s ability to carry out the necessary hedging transactions)), adjustments may be made to the terms of the product to account for the relevant event or the product may be early redeemed. The amount paid on any early redemption may be less than the amount originally invested.
This product is intended for clients who:
• have significant knowledge and experience in products such as the one described in the key information document
• are willing and able to bear a potentially total loss
• have a risk tolerance consistent with the summary risk indicator in the key information document
• are expressing a view on the underlying consistent with the conditions for a positive outcome (as stated in the product description)
• have a horizon consistent with the term of this product as determined independently or on the basis of professional advice.
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?
Application Fee
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: 15 September 2023
ISA Transfer closing date: 01 September 2023
Important Documents
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;
> FATCA – Financial Institutions
> FATCA – Non Financial Foreign Entity
The 3 classifications for investments from trusts are;
> Trusts – Financial Institutions
> Trusts – Individual Owner
> Trusts – Non Financial Foreign Entity
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Is the Walker Crips UK Defensive Annual Kick Out Plan right for me?
This Plan may be suitable for you if you:
♦ 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 potential growth from your Initial Investment and do not require an income during 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 is below 60% of the Initial Index Level on the Investment End Date;;
♦ Are prepared to accept the Counterparty risk of Credit Agricole CIB. If Credit Agricole CIB 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 during the Investment Term. 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 you may receive back less compared to a direct investment in the underlying index;
♦ Have a positive view of the FTSE 100 Index performance over the Investment Term;
♦ Have a minimum of £10,000 to invest (£5000 for JISA).
This Plan may not be suitable for you if you:
♦ 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 Credit Agricole CIB;
♦ Do not have other readily accessible funds available to meet your immediate financial needs and for emergencies;
♦ Are unable to commit to investing your during the 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 performance of the Index during the Investment Term