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IDAD launch


IDAD launch Issue 16 of The Callable Deposit Plan June 2022
IDAD launch Issue 16 of The Callable Deposit Plan June 2022.  Please find below a summary of the product, together with a link to obtain further details, along with the Brochure and Key Information Document.
IDAD launch

IDAD launch Deposit Plan.

iDAD The Callable Deposit Plan Issue 16 – June 2022

Investment Term: up to 7 years 1 week

Participation Rate: 200% Participation in the growth of the  FTSE™ 100 Index at maturity if the Deposit Taker does not ‘call’ the product prior to its maturity date.

Interest Rate:  6% per annum (1.50% per quarter) if the Deposit Taker ‘calls’ the product on any observation date prior to its maturity date.

Deposit Taker: Goldman Sachs International Bank

How the Investment works  

This is a 7 year 1 week Deposit Plan linked to the performance of the FTSE 100 Index.  The Deposit Plan is constructed to offer a potential return of 6% per annum (1.50% per quarter) to the final Callable Observation Date if the Deposit Taker calls the investment early, or 200% participation in any growth of the FTSE 100 Index at maturity.

If the Deposit Plan is not called early, at maturity, the investor receives a return of 200% of any positive growth in the FTSE 100 Index.  For example, at maturity, if the FTSE 100 Index has risen 10% from the Initial Index Level, the investor will receive 100% of their investment back plus a 20% growth payment (10% x 200%).

The opportunity for full capital protection and growth is the key aim of this investment.

The investment is linked to the FTSE 100 Index (see page 7 of the brochure for full details) and investors will benefit from growth in the Underlying Index unless, the Deposit Taker, Goldman Sachs International Bank ( GSIB) “calls” the deposit early, in which case investors would be paid a competitive fixed rate of return of 6% p.a.

The initial investment into the Deposit Plan, minus any initial Adviser Fee, will be returned in full on the Maturity Payment Date, or if GSIB calls the Deposit Plan early, regardless of the performance of the Underlying Index.

The Callable Feature what is this and when may this occur?

On each Observation Date from end of year 2, the Deposit Taker has the option to ‘call’ the Deposit Plan at their discretion. This means the Deposit Plan could be redeemed at that point and investors will receive their Initial Investment into the Deposit Plan, together with the fixed rate of return of 6% p.a. (1.50% per quarter).

The main reason this may happen is because GSIB believes the growth payment that could be paid out at maturity, may be higher than the Interest that has accumulated so far.

For example, if after 4 years the Underlying Index has grown by 40% and seems set to continue growing, the Deposit Taker may feel that they will be better off redeeming the Deposit Plan and paying 4 years of the fixed annual return, rather than potentially paying the Index related return once the Deposit Plan matures.

Click here for more details of the IDAD The Callable Deposit Plan Issue 16 – June 2022

IDAD launch Deposit Plan

About Goldman Sachs International Bank (GSIB):  GSIB offers investment banking, securities and investment management services to corporations, financial institutions, governments and high net worth individuals worldwide.  GSIB also operates an online retail banking service in the United Kingdom through its trading name Marcus by Goldman Sachs.  The company is part of the Goldman Sachs Group, a US based banking and financial services organization GSIB is registered in England and Wales (no 1122503 and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

GSIB are the Deposit Taker for the Growth Deposit Plan; therefore investors are exposed to the risk of them defaulting on their obligation to repay the capital and any returns due under the terms of the Deposit Plan.

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 iDAD 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 if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.