When you invest in the Walker Crips UK & US Step Down Kick-out Plan, you may receive a return of 10% for each year of your investment depending on the performance of the FTSE 100 and S&P 500 Indices.
The full Investment Term is six years, however, the Plan has the potential to mature early (kick-out) from the first anniversary and annually thereafter.
If the FTSE 100 Index and the S&P 500 Index are both at or above their required kick out levels on an Anniversary Date, the Plan will mature early (kick-out) and repay your Initial Investment plus a defined return.
The required kick-out levels reduce on the fourth anniversary, and annually thereafter. The required Final Index Levels are 85% of the Initial Index Levels.
You will receive back significantly less than you initially invested if the Closing Level of either index is below 65% of its 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 and any return that may be due, irrespective of the performance of the underlying Indices.
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 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 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 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 and autocall payments are shown on the table in 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 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.
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 underlyings.
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 underlyings. 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 has been designed for retail investors who fulfill all of the criteria below:
1. they have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, either independently or through professional advice, and they may have experience of investing in and/or holding a number of similar products providing a similar market exposure;
2. they 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.
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 directly to us.
Important Plan Dates
Closing Date: 16 June 2023
ISA Transfer closing date: 02 June 2023
> Plan Brochure – UK & US Step Down Kick Out Plan
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 & US 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 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 the Index is below 65% 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 and the Closing Level of the S&P 500 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 or the Final Index Level of the S&P 500 Index is below 85% of its Initial Index Level on the Investment End 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 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 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 you may receive back less compared to a direct investment in each underlying Index;
♦ 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 (£5000 for JISA).
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 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 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 FTSE 100 Index and the S&P 500 Index during the Investment Term.