Investment & Insurance Blog

Currently browsing Latest Posts

Causeway Securities S&P 500


Causeway Securities S&P 500

We are writing to let you know that Causeway Securities have launched a new tranche of their S&P 500 Kick-Out Plan for December 2022:

S&P 500 Kick-Out Plan – December 2022The plan, issued by Citigroup, offers potential investment returns of 10.25% per annum paid gross, over a maximum 6-year term. The plan will mature early if the S&P 500 is equal to or above its start level, observed annually from year 1.

Key Dates:
ISA transfer deadline: 2 December 2022
Application form and monies deadline (including Direct Investment & ISA Subscriptions 2022/23): 16 December 2022
Start Date: 23rd December 2022

A brief summary of the plan is detailed below.

Causeway Securities S&P 500 Kick-Out Plan – December 2022

Potential Investment Return: A 10.25% return on Investment for each year the Plan runs (paid gross), is payable if the Plan Kicks-Out.

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 the Potential Investment Return of 10.25% for each year that the Plan has been in existence.

The first Observation Date on which an early maturity could be triggered will be 26th December 2023, one year 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: The Counterparty of the Securities is Citigroup Global Markets Limited (“CGML”).  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.

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 Capital Gains Tax. Investors should obtain their own tax advice.
Causeway Securities S&P 500

Click here for more details of the Causeway Securities S&P 500 Kick-Out Plan – December 2022
About Citigroup Global Markets Limited (“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) derivatives 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’).
Don’t Forget the Risks

Causeway Securities S&P 500 kick out plan

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.

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.