Meteor FTSE Quarterly Contingent Income Plan November 2020
Meteor have launched the FTSE Quarterly Contingent Income Plan November 2020 is a maximum 10 year 3 week investment. The Plan has two options, 1) offering a potential gross investment return of 1.25% payable for each quarter in force and 2) offering a potential gross investment return of 1.45% payable for each quarter in force. The Meteor income plan is only available with Advice.
The counterparty for this Plan is Credit Agricole Corporate & Investment Bank (Credit Agricole CIB) (the ‘Guarantor’).
About Credit Agricole
Credit Agricole S.A. operates as a bank holding company. The Company, through its subsidiaries, offers banking and insurance services, as well as designs and manages specialized financial products. Credit Agricole also provides specialized financial services including management and securities, insurance, consumer finance, private banking, and leasing and factoring. The company, which started as an agricultural credit company in 1894, is majority-owned by around 40 French regional consumer banks and together they make up the Crédit Agricole Group.
Crédit Agricole SA handles the group’s more advanced banking functions, such as asset management, investment banking, capital market services, insurance, leasing, private banking, and more. It also operates Le Crédit Lyonais (LCL), one of the biggest retail banks in France, and its international arm oversees activities in Italy, Poland, Egypt, and elsewhere.
Source: Bloomberg, 11 May 2020
This is a capital at risk plan and only available with advice. You will lose money if the Final Level of the lower performing Index is below 65% of its Opening Level. The amount of your money that you would lose will be the percentage by which the Final Level of that Index is below its Opening Level. In extreme circumstances you could lose all of your money. If the Final Level of the lower performing Index is at least equal to 65% of its Opening Level you will get back the amount you invested.
Option 1: If the Closing Level of the Index on any Quarterly Measurement Date is at least equal to 80% of its Opening Level, the Plan will pay a gross income of 1.25% for that quarter. No income will be payable for a quarter if the Closing Level of the Index is below 80% of its Opening Level on the Quarterly Measurement Date.
Option 2: If the Closing Level of the Index on any Quarterly Measurement Date is at least equal to 85% of its Opening Level, the Plan will pay a gross income of 1.45% for that quarter. No income will be payable for a quarter if the Closing Level of the Index is below 85% of its Opening Level on the Quarterly Measurement Date.
The first Quarterly Measurement Date will be on 1 March 2021, three months after the Start Date. Thereafter, the performance of the Index will be measured quarterly. If the kick-out condition is met (see below), income will be paid in respect of that quarter and the Plan will mature early. No further income payments will then be payable.
Kick Out Condition
From year 1, the Plan will kick-out, i.e. mature early, if the Closing Level of the Index is at least 5% above its Opening Level on any Quarterly Measurement Date. In this event you would receive a full return of your money, as well as the income due for that quarter. The first Quarterly Measurement Date on which an early maturity could be triggered will be on 29 November 2021, one year after the Start Date.
For further information regarding each option please click on the following links:
Don’t Forget the Risks
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquid or counterparty exposure.
At the Best Price FS price point (when combined with our smiley and helpful service) the Meteor Plans are certainly worthy of consideration for inclusion within investment portfolios.
Simply get in touch if you wish to receive regulated advice in relation to the ‘suitability of the plans to meet your investment needs’.
Best Price FS Team