|Causeway Securities FTSE 100 Fixed Monthly Income Plan – July 2022Potential Investment Return: The Causeway Securities FTSE 100 Fixed Monthly Income Plan – July 2022, issued by Morgan Stanley, offers unconditional monthly income payments of 0.4208% (5.05% per annum) paid gross, over a 5-year term. The plan will return initial capital in full to the investor provided, at maturity, the FTSE 100 is not below 65% of the start level.
Fixed Income Payment Dates: Monthly commencing 13 September 2022 and ending 12 August 2027. The full list of dates can be found on page 6 of the brochure.
Capital Protection Barrier: 65% of the Opening Level (observed on the Final Observation Date of the Plan only). If, on the Final Observation Date, the Closing Level of the Underlying Asset is less than 65% of its Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the Underlying Asset is below its Opening Level.
Counterparty Risk: The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset.
Taxation: It is Causeway Securities’ understanding of current legislation and known HMRC practice that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Income Tax. Investors should obtain their own tax advice.