Hilbert closed the previous tranche early due to high demand. Hilbert have now launched their latest UK Conditional Quarterly Autocall Plan, a structured product which is linked to the performance of the FTSE 100 index and aims to provide investors with a return of 7% per annum even in a flat or falling market.
The product aims to pay a coupon of 1.75% at the end of each quarterly measurement date. It will do so if the closing level of the FTSE 100 has not fallen more than 20% from its strike level. Alternatively , if the closing level of the FTSE 100 falls below 20% of its strike level on a quarterly measurement date, no income will be paid for that quarter. In real world terms, if it’s assumed the FTSE 100 is trading at around 7,180 points the index would have to fall below 5,744 points on the quarterly observation date for the plan not to pay income for that specific quarter.
After 10 years, when the plan matures, you could receive back significantly less than originally invested if the final level of the FTSE 100 has fallen more than 40% below its strike level.
In such circumstances, the investment will be reduced by the same percentage amount that the FTSE 100 has fallen from its strike level. If the underlying asset remains above the 40% level investors will receive back a sum equal to your original investment including your final income payment if the coupon barrier level is met.
To help mitigate the loss of any capital on maturity Hilbert have included an early maturity feature, meaning that the Plan will mature early if the closing level of the FTSE 100 has increased by 5% from its strike level on any Quarterly Measurement Date from 22nd March 2021. If this happens, investors will receive the income payment for that quarter, and the repayment of their original investment in full at this point.
We must express that investors must read and fully understand the Key Information Document and the associated risks prior to investing.
Don’t forget the risks
We attract all investors to the risks of investing in Structured Products.
Best Price FS Team
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