When you invest in the UK & US Conditional Income Kick Out Plan, you may receive quarterly income payments of 1.50% for each quarter that has elapsed since the Investment Start Date, depending on the performance of the FTSE 100 Index and the S&P 500 Index.
The full Investment Term is six years, however, the Plan has the potential to mature early (kick-out) from the end of year 2 and annually thereafter.
If the FTSE 100 Index and the S&P 500 Index are at or above 80% of their Initial Index Levels on an Observation Date, the Plan will pay income of 1.50% of your Initial Investment. However, if the Closing Level of either index is below 80% of its Initial Index Level, on an Observation Date, you will receive no income payment (as detailed on page 5 of the brochure).
If the FTSE 100 Index and S&P 500 Index are at or above their Initial Index Levels on an Anniversary Date, the Plan will mature early (kick-out) and repay your Initial Investment plus a final income payment (as detailed on page 6 of the brochure).
You will receive back significantly less than you initially invested if the Closing Level of the FTSE 100 Index or the S&P 500 Index are below 65% of their Initial Index Level on the Investment End Date.
The Counterparty for this Plan is Morgan Stanley & Co. International plc. If Morgan Stanley & Co. International plc were to fail or become insolvent, you could lose some or all of your Initial Investment, irrespective of the performance of the underlying Index.
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 final reference level of 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. The relevant dates are shown in the table(s) key information document
Interest: If the product has not terminated early, on each interest payment date you will receive an interest payment of GBP 1,500.00 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 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 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.
You do not have any entitlement to a dividend from any of the underlyings and you have no right to any further entitlement resulting from any such 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 advanced knowledge and a comprehensive understanding of the product, its market and its specific risks and rewards, with relevant financial industry experience including either frequent trading or large holdings in products of a similar nature, risk and complexity, either independently or through professional advice;
2. 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;
3. 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
4. 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.
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: 28 January 2022
ISA Transfer closing date: 14 January 2022
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 UK & US Conditional Income 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 any potential income will be based on predetermined calculations;
♦ Understand that you will lose, and are able to withstand the loss of, more than 35% of your Initial Investment if the Final Index Level of either Index is below 65% of its Initial Index Level on the Investment End Date;
♦ Are looking for potential income payments from your Initial Investment, payable on a quarterly basis throughout the Investment Term;
♦ Understand that any potential income payments are determined by the Closing Levels of the FTSE 100 Index and the S&P 500 Index at specified dates throughout the Investment Term;
♦ Understand that you will receive no income payment where the Final Index Level of either the FTSE 100 Index or the S&P 500 Index is below 80% of its Initial Index Level on any Observation Date
♦ Are prepared to accept the Counterparty risk of Morgan Stanley & Co. International plc. If Morgan Stanley & Co. International plc defaults you understand that you could lose your Initial Investment 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 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;
♦ Have a positive view of the performance of the FTSE 100 Index and the S&P 500 Index over the next six 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 income is 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 Morgan Stanley & Co International plc
♦ 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 year Investment Term;
♦ Would like to receive potential growth from your Initial Investment throughout 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 income to be dependent on stock market performance;
♦ Do not have a positive view of the performance of FTSE 100 Index or the S&P 500 Index over the next six years.