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Causeway Securities


Causeway Securities
We are writing to let you know that Causeway Securities have launched a new FTSE CSDI Step Down Kick-Out Plan – July 2022.

FTSE CSDI Step Down Kick-Out Plan – July 2022

The plan, issued by Citigroup, offers potential investment returns of 8.75% per annum paid gross, over a maximum 10-year term. The plan will mature early if the FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index (‘FTSE CSDI’)  is equal to or above a reducing reference level, observed annually, beginning at 105% of start level in year 2, reducing to 85% in year 10.

Key Dates:
ISA transfer deadline: 17th June 2022
Application form and monies deadline (including Direct Investment & ISA Subscriptions 2022/23): 1st July 2022
Start Date: 8th July 2022

A brief summary of the plan is detailed below.

Causeway Securities
Causeway Securities FTSE CSDI Step Down Kick-Out Plan – July 2022

Potential Investment Return: The Causeway Securities FTSE CSDI Step Down Kick-Out Plan – July 2022 is a maximum 10 year plan offering a Potential Investment Return of 8.75% for each year the Plan runs (paid gross), only payable if the Plan Kick-Out.

Kick Out Barrier: The Plan will Kick-Out if the respective Closing Level of the Underlying Asset, on any Observation Date from end of Year 2, is at or above the Kick Out Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 8.75% for each year that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be 8 July 2024, two years after the Start Date.
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 CSDI Step Down Kick-Out Plan – July 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

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.