Meteor FTSE Kick Out Plan March 2023 (Credit Agricole) - 7012 FULLY SUBSCRIBED
The Meteor FTSE Kick Out Plan March 2023 (Credit Agricole) - 7012 is a capital at risk investment offering a Potential gross investment return of 10% payable for each year in force from year 1. This plan is only available on an 'Advised' basis.
- Market / index link: FTSE 100 Index
- Counterparty: Credit Agricole CIB
- Investment term: 6 -years 3-weeks
- Kick-out / Early maturity: Yes
- Barrier type: End of Term
- Barrier level: 65%
The closing date for ISA transfer applications is 14 February 2023.
Product Literature & Forms
You should always read the relevant plan brochure and any other plan documentation, for full details of the plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document ('KID'), that you should consider, before deciding to invest in the plan.
If you do not fully understand the risks or are unsure as to the suitability of the investment, please contact us
How to Invest?
Please note: This plan is available on an advised basis only. If you are interested in this plan, please telephone us on 01639 860111 to arrange a free consultation
1 Call for a free initial telephone consultation. If you wish to progress the process of the product purchase, the regulatory process of ‘advice’ must commence.
2 The completion of a financial review – which will confirm details of your income/capital and investment needs and experience
3 The completion of a risk profiler - which will help to measure your attitude to risk.
This process will enable ‘advice’ to be provided in relation to the suitability of the product to meet with your needs. The fee for this service and process is 1.5% (subject to a minimum fee of £300) for focused advice – which is focused and narrowed to the suitability of the structured product you want to purchase.
Further Information
The Meteor FTSE Kick Out Plan March 2023 (Credit Agricole) - 7012 is a capital at risk investment offering a Potential gross investment return of 10% payable for each year in force from year 1.
Investment Return: If the Closing Level of the Index on any Measurement Date before the Final Measurement Date is at least equal to its Opening Level the Plan will kick out, i.e. mature early, and make a gross investment return of 10% of the money you invest for each year that the Plan has been in force.
The first Measurement Date will be on 4 March 2024, one year after the Start Date. If the Plan has not matured early, and the Closing Level of the Index on the Final Measurement Date (the ‘Final Level’) is at least equal to its Opening Level, the Plan will provide an investment return at the Maturity Date equal to 60% of the money you invest.
If the Final Level of the Index is below its Opening Level, no investment return will be payable at the Maturity Date.
Capital Return: You will lose money if the Final Level of the Index is below 65% of its Opening Level. If the Final Level of the Index is at least equal to 65% of its Opening Level you will get back the amount you invested. The amount of your money that you would lose will be the percentage by which the Final Level of the Index is below its Opening Level. In extreme circumstances you could lose all of your money.
The Securities purchased will be Notes issued by Credit Agricole CIB. The Securities can be viewed in a similar way to a loan to the Issuer and are linked to the performance of Preference Shares issued by Broadwalk Investments Limited, which is in turn linked to the performance of the Index.
Is this plan suitable for you?
A typical investor who invests in this Plan will:
- Be an Advanced Investor, with appropriate knowledge and experience of equity-based investments.
- Like investments that provide known returns based on pre-determined market outcomes.
- Want the potential to secure an investment return above that available from a deposit-based investment and acknowledge and accept the level of risk, identified by the Summary Risk Indicator set out in the Key Information Document (KID)
- Be willing and able to tie up their money for the term of the Plan for the objective of capital growth.
- Accept that they could lose money and be able to afford to do so.
- Understand that in the event of a loss that this loss would be at least 35% of the money they put into the Plan, and could be considerably more, and in extreme circumstances they could lose all of their money.
- Understand that any investment return is dependent on the performance of the Index, which is calculated on set dates, and accept they might not get any investment return at all;
- Know that the level of the Index can fall but do not expect the fall to be more than 35% of its Opening Level at the Final Measurement Date.
- Appreciate the importance of having a spread of investments to reduce concentration risk; ü Know and accept that inflation reduces the real value of money and what it can buy;
- Understand that equity markets are affected by economic and political events nationally and globally.
- Accept that if the Counterparty defaults they could lose all their money and any investment return and that they would not have any recourse to the FSCS.
An investor will not meet the target market criteria if:
- They do not understand how this investment works.
- They are unable, or unwilling, to accept the risks associated with this Plan, including the loss of their money.
- The Plan does not meet their investment objectives.
Don’t forget the risks
All investments carry risk. It is identifying those risks, understanding how they may affect an investment and assessing whether an investment is suitable for your circumstances that is important.
The potential returns of most structured products and repaying the money invested are usually linked to the level of a stock market index and also depend on the financial stability of the issuer and counterparty bank. You should only consider investing if you understand and accept the risk of losing some or all of any money invested.
You should always read the relevant plan brochure and any other plan documentation, for full details of a plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document (‘KID’), that you should consider, before deciding to invest in a plan.
Structured products should only be considered as part of a diversified and balanced portfolio.
Below is a summary of some of the main risks usually associated with an investment in structured products plans:
Market risk to potential returns
Whether or not a plan generates the potential returns for investors usually depends on the closing level of the relevant index on the relevant dates for the plan, i.e. the kick-out anniversary dates for kick-out products; the early maturity dates and end dates for growth products; the annual income dates for income products.
If the index closes below the level needed, for the plan or plan options chosen, on all of the relevant dates, the plan or plan options will not generate a return.
Market risk to repayment of money invested in 'Capital-at-Risk' plans
If the closing level of the relevant index is below the level needed on all of the kick-out anniversary dates or early maturity dates, if relevant for the plan or plan options chosen, and on the end date, repaying the money invested at maturity will usually depend on the closing level of the index on the end date..
Different structured products use different types of protection barriers. Some products use barriers that are observed every day that can therefore be breached on any day during the investment term, while some products use barriers that are only observed at the end of the investment term and that cannot therefore be breached during the investment term.
Market risk to the repayment of money invested on the end date will depend on the type of barrier and its level.
For example, for a product with an end of term barrier, set at 60% of the start level, if the index for the plan closes at or above 60% of the start level, on the end date, money invested will be repaid in full (less any agreed adviser fees and withdrawals). However, if on the end date the index closes below 60% of the start level, the amount of money repaid (less any agreed adviser fees and withdrawals) will be reduced by the amount that the index has fallen. For example, if the index has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).
'Protected' types of structured products
Some structured product plans are designed so that they are 100% protected from stock market risk at the end date.
It is important to understand that even if a structured product plan is designed with 100% protection from stock market risk, at the end date, it will still usually have issuer and counterparty bank risk. In other words, both the potential returns of the plan and repaying the money invested at the end date will depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.
Issuer and counterparty bank risk
Both the potential returns and repaying the money invested of most structured products depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.
Financial Services Compensation Scheme ('FSCS') protection
It is important to understand that it is not usually possible to claim under the Financial Services Compensation Scheme if the issuer and counterparty bank fail to meet their obligations or if the stock market index that a plan links to falls.
Structured deposits
Structured deposit plans are deposit-based and will usually be fully protected from stock market risk at the end date and also benefit from the protection of the Financial Services Compensation Scheme, if the bank or building society is a licensed UK deposit taker.