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Société Générale FTSE


Société Générale FTSE

iDAD have launched a new tranche of their plan – Société Générale FTSE™ 100 Kick Out Plan – Issue2. This plan is only available on an Advised basis.

About Société Générale : Société Générale is one of the largest European financial services groups with more than 31 million customers in 67 different countries.

Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth, aiming to be the trusted partner for its clients, committed to positively transforming the world across 3 complementary core businesses, Financial Retail Banking, International Retail Banking & Financial Services and Global Banking & Investor Solutions.

Société Générale is a French credit institution (bank) authorised and supervised by the European Central Bank (ECB) and the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority) (ACPR) and regulated by the Autorité des Marchés Financiers (the French financial markets regulator) (AMF). Société Générale London Branch is authorised by the Prudential Regulation Authority with deemed variation of permission and is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website.

SG Issuer is a 100% owned subsidiary of Société Générale and will act as Issuer of the “FTSE 100 Kick Out Plan – Issue 2”.

The return of your invested capital and any growth due is dependent on Société Générale paying back the amounts due under its obligations on the product. Consequently, the investor bears a credit risk on the Guarantor. This is called Counterparty Risk or Credit Risk.

SG Issuer is the flagship issuer of Société Générale with over €30 billion in outstanding notes and bonds.

Source: Société Générale 22.09.2020

Société Générale FTSE
iDAD Société Générale FTSE™ 100 Kick Out Plan – Issue 2

Term: up to 5 years 2-weeks Potential returns of 8.50% p.a. if the FTSE 100 is at or above 100% of Initial Level at the Observation Dates

Issuer: SG Issuer

The Plan is subject to Counterparty Risk

The Plan puts all your Capital at Risk

Société Générale FTSE™ 100 Kick Out Plan – Issue 2

This Société Générale FTSE plan  provides investors with the opportunity to earn 8.50% p.a. if the Underlying market Index remains flat or rises. If the closing level of the Underlying Index on any early observation date (set out on page 3 of the brochure) before the Final Valuation Date is at least equal to or above the Kick Out Trigger Level, the Plan will kick out, i.e. mature early and make a gross investment return of 8.50% for each year that the Plan has been in force.

The first early observation date is the 16 May 2022, one year after the Plan Start Date. If the Plan has not matured early, and the closing level of the Underlying Index on the Final Valuation Date (the ‘Final Levels’) is at least equal to or above Kick Out Trigger Level, the Plan will provide an investment return at the Maturity Date equal to 142.50% made up of 100% of your investment plus a 42.50% return, (5 x 8.50%) of the money you invested. Société Générale FTSE

Capital Protection Barrier

At the final observation date, if the Underlying Index is at or above 65% of its Initial Level, then full capital is returned. Otherwise, if the Underlying is below 65% of its Initial Level, your capital will be at risk. The capital will be reduced by 0.10% for each day the Index has closed below the 65% barrier during the life of the Plan. For example, if the Underlying has fallen below 65% of its Initial Level for 50 days during the life of the Plan, 5% of capital will be deducted from the initial investment (0.10% x 50 days = 5%).  A full capital loss may be sustained if the Underlying Index is below the Capital Protection Barrier for 1000 days or more.

What is the aim of using a daily Capital Protection Barrier?

Société Générale FTSE-  aim of the daily Capital Protection Barrier is to reduce the risk of a capital loss being sustained based on one observation date only (i.e. at maturity). Any capital loss will instead be accrued based on the number of days the Underlying Index closes below the Capital Protection Barrier. The goal of such a feature is to prevent significant losses occurring due to one off large drops, when in fact the investors’ general view of the Underlying Index may have been correct during most of the Plan’s life.

What else should be considered with a daily Capital Protection Barrier?

Société Générale FTSE – The capital loss you might incur at maturity will be accrued throughout the life of the Plan. The longer the Underlying Index remains below the Capital Protection Barrier the greater the capital loss at maturity.

A capital loss will be sustained at maturity if the Underlying Index is below the defined Capital Protection Barrier at maturity.

The size of the capital loss will be determined by the number of days the Underlying index has been below the Capital Protection Barrier during the Plan’s life.

If the Underlying Index declines sharply at inception or for a long period of time during the investment period, the capital loss may be significantly higher than the loss you would have suffered by a direct investment in the Index.

Click here for more details of this product
Don’t Forget the Risks

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.

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 liquid or counterparty exposure.

At the Best Price FS price point the iDAD Société Générale FTSE 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.