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Causeway Securities


Causeway Securities

We are writing to let you know that Causeway Securities have launched a new tranche of the following plans for June 2022:

FTSE 100 Semi-Annual Kick-Out Plan

`The plan issued by Citigroup, offers potential investment returns of 8.6% per annum paid gross, over a maximum 6-year term. The plan will mature early if the FTSE 100 is equal to or above its start level, observed semi-annually from year 3. The delayed kick-out feature allows the investor to roll up a minimum of 3 years return, while still offering 7 opportunities for a successful maturity.

Key Dates:
ISA transfer deadline: 3 June 2022
Application form and monies deadline: 17 June 2022
Start Date: 24 June 2022

FTSE 100 5 Year Deposit Plan – June 2022

The Plan, with Royal Bank of Canada as Deposit Taker, offers 26.8% return (5.36%pa) if at maturity the FTSE 100 is equal to or above its start level. If the FTSE 100 is below its start level at maturity, the Plan will return full capital. The Plan is covered by the Financial Services Compensation Scheme.  This plan is only available on an ‘Advised’ basis.

ISA transfer deadline: 6th June 2022
Application form and monies deadline: 20th June 2022
Start Date: 27th June 2022

A brief summary of each of the plans is detailed below.

Causeway Securities
Causeway Securities FTSE 100 Semi-Annual Kick-Out Plan – June 2022Potential Investment Return:  If the Closing Level of the Underlying Asset on any Observation Date before the Maturity Date is at least equal to its Opening Level the Plan will kick out, i.e. mature early, and make a gross investment return for each semi annual Observation Date that the Plan has been in force.

The first Measurement Date will be on 24 June 2025, three years after the Start Date. In the event an early maturity is triggered at this point the investment return payable will be 25.8%.The potential investment return will then increase by 4.3% for each subsequent semi annual Observation Date.

If the Plan has not matured early, and the Closing Level of the Underlying Asset on the Maturity 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 51.6% 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.

Kick-Out Barrier:  The Plan will Kick Out if the respective Closing Level of the Underlying Asset, on any Observation Date, is at or above 100% of its respective Opening Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 4.3% for each semi annual Observation Date that the Plan has been in existence.

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:  If the Counterparty 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.

Click here for more details of the Causeway Securities FTSE 100 Semi-Annual Kick Out Plan – June 2022

About CGML:  CGML is a wholly owned, indirect subsidiary of Citigroup Inc, limited by shares. It is Citi’s international broker dealer, providing products and services for institutional clients. It is a market maker in equity, fixed income and commodity products across cash, over the counter (OTC) derivates and exchange traded markets, as well as a provider of investment banking capital markets and advisory services. CGML operates globally, generating the majority of its business from the Europe, Middle East and Africa (EMEA) region with the remainder coming from Asia and the Americas. Source: “Citigroup Global Markets Limited Annual Report and Financial Statements for the year ended 31 December 2020”, accessed 1 October 2021.

Relevant credit ratings and outlooks for CGML (‘Guarantor of the Securities’).

Causeway Securities

Causeway Securities
Causeway Securities FTSE 100 5 Year Deposit Plan – June 2022

Potential Return: The Potential Investment Return is 100% of Initial Capital plus a fixed gross interest payment of 26.8% of the money you invest at Maturity, if the Underlying Asset is equal to or above the Opening Level. If the Final Level is below its Opening Level, no growth payment will be payable at the Maturity Date.

Capital Protection: Your Initial Capital will be returned in full at Maturity, regardless of the performance of the Underlying Asset.*

*Subject to Deposit Taker solvency.

This plan is only available on an ‘Advised’ basis.

Click here for more information on the Causeway Securities FTSE 100 5 Year Deposit Plan – June 2022
About Royal Bank of Canada: Royal Bank of Canada (RBC) is Canada’s largest bank and one of the largest in the world by market capitalization. The bank provides a diversified set of personal and commercial banking, wealth management, insurance, investor and treasury services, and capital markets globally. It serves more than 17 million customers, businesses and group clients, individual, and institutional clients.

Causeway Securities

Don’t Forget the RisksAs 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.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

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 liquidity or counterparty over exposure.

At the Best Price FS price point the Causeway Securities Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team

Advice: Simply click here to get in touch to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.