When you invest in the Walker Crips US Step Down Kick-out Plan, you may receive a return of 7.25% for each year of your investment depending on the performance of the 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, on an Anniversary Date, the Index closes at or above the required kick-out level the Plan will end and your Initial Investment will be repaid to you, plus an accumulated return of 7.25% for each year that has elapsed since the Investment Start Date.
If, however, the Index closes below the required kick-out level on an Anniversary Date, the Plan will continue to the next Anniversary Date.
Where the Plan has not matured early and runs to the full six year term, you will lose a significant proportion of your Initial Investment if the Final Index Level is below 65% of its Initial Index Level on the Investment End Date.
The Counterparty for this Plan is Citigroup Global Markets Ltd. If Citigroup Global Markets Ltd 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 any Index.
Other Key Information
English Law governed notes
Citigroup Global Markets Limited (http://www.citigroup.com/). The product issuer is Citigroup Global Markets Funding Luxembourg S.C.A. with a guarantee by Citigroup Global Markets Limited. Call +44 20 7986 2121 for more information.
Authorised by the U.K. Prudential Regulation Authority and regulated by the U.K. Financial Conduct Authority and U.K. Prudential Regulation Authority
The product is designed to provide a return in the form of a cash payment on the maturity date in an amount that depends on whether the underlying satisfies the barrier conditions specified below. The product has a fixed term and will terminate on the maturity date, unless terminated early.
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 table(s) 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 85.00% of the initial reference level, a cash payment equal to GBP 1.435;
2. otherwise, if the final reference level is at or above 65.00% of the initial reference level and below 85.00% of the initial reference level, a cash payment equal to GBP 1.00;
3. otherwise, if the final reference level is below 65.00% of the initial reference level, a cash payment equal to (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.
The product is intended to be offered to retail investors who fulfil 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 seek income and/or 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;
3. they accept the risk that the issuer or guarantor could fail to pay or perform its obligations under the product and they are able to bear a total loss of their investment;
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: 06 April 2023
ISA Transfer closing date: 24 March 2023
> Plan Brochure – 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 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 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 is below 85% of the Initial Index Level on the Investment End Date;
♦ Are prepared to accept the Counterparty risk of Citigroup Global Markets Ltd. If Citigroup Global Markets Ltd 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 that you will not need access to your Initial Investment 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;
♦ Have a positive view of the performance of the Index over the Investment Term;
♦ 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 Citigroup Global Markets Ltd;
♦ 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 Index during the Investment Term.