Mariana 10:10 Plan – November 2019
We thought it would be of benefit to provide our clients and readers with a further overview of the new issue of the Mariana 10:10 plans and options. The links to the three Options are provided below for your information and documents:
https://www.bestpricefs.co.uk/structured-products/10-10-ftse-kick-out-plan1/
https://www.bestpricefs.co.uk/structured-products/10-10-ftse-kick-out-plan2/
https://www.bestpricefs.co.uk/structured-products/10-10-ftse-kick-out-plan3/
This is a ten-year plan based on the performance of the FTSE™ 100 Index, the underlying asset. The plan has three options and is constructed to offer a potential return of 8.20% in Option 1, 10.94% in Option 2 and 13.47% in Option 3 for each year the plan runs with the possibility of early maturity and the full repayment of initial capital from the end of the plan’s second year and annually thereafter. The potential return is only payable if the plan kicks out.
Should the closing price of the underlying asset on an observation date be at or above the kick out trigger level, the plan will mature early, repaying investors’ initial capital plus the potential return multiplied by the number of years the plan has run.
The kick out observations begin on the second anniversary date and continue on an annual basis until the plan’s maturity date (from 15 November 2021 to 15 November 2029).
If the plan has not already kicked out, initial capital will be repaid in full at the end of the plan’s term if on the maturity date (15 November 2029) the closing price of the underlying asset is not more than 30% below the start level.
If on the maturity date the closing price of the underlying asset is less than 70% of the start level (representing a decline of more than 30% from the start level), your initial capital will be lost at a rate of 1% for every 1% the closing price of the underlying asset is below the start level.
The Counterparty chosen for this plan is Goldman Sachs International. Goldman Sachs & Co. Wertpapier GmbH, an affiliate of Goldman Sachs International, is the issuer of the underlying investments that are purchased on the investors’ behalf.
Goldman Sachs International is part of The Goldman Sachs Group, Inc. which is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centres around the world. At the end of Q2 2019 it had a Common Equity Tier 1 ratio of 13.8%. More information on Goldman Sachs International can be found on their website www.goldmansachs.com .
Goldman Sachs International acts as guarantor of the securities issued by Goldman Sachs & Co. Wertpapier GmbH, which means that Goldman Sachs International will make the payments under the securities if Goldman Sachs & Co. Wertpapier GmbH is unable to fulfil its payment obligations. You may lose part and up to all your investment if Goldman Sachs International goes into liquidation and defaults on paying your Plan return and the repayment of your initial capital.
Mariana FTSE Defensive Kick Out Plan November 2019
This is an eight-year plan based on the performance of the FTSE™ 100 Index, the underlying asset and is only available on an ‘Advised’ basis. The plan is constructed to offer a potential return of 5.70% for each year the plan runs with the possibility of early maturity and the full repayment of initial capital from the end of the first year and annually thereafter. The potential return is only payable if the plan kicks out. The link is provided below for further details and documents:
https://www.bestpricefs.co.uk/structured-products/ftse-defensive-kick-out-plan/
Should the closing price of the underlying asset on an observation date be at or above the kick out trigger level, the plan will mature early, repaying the investor’s initial capital plus the potential return multiplied by the number of years the Plan has run.
The kick out observations begin at the end of the first year and continue on an annual basis until the plan’s maturity date (from 23 November 2020 to 22 November 2027). The kick out trigger level at the end of the first year is 105% and this decreases by 5% for each the plan runs up until 75% at the end of year 7. At the final observation at the end of year 8 the kick out trigger level drops by a further 10% to 65%.
If the plan has not already kicked out, initial capital will be repaid in full at the end of the plan’s term if on the maturity date (22 November 2027) the closing price of the underlying asset is not more than 40% below the start level.
If on the maturity date the closing price of the underlying asset is less than 60% of the start level (representing a decline of more than 40% from the start level), your initial capital will be lost at a rate of 1% for every 1% the closing price of the underlying asset is below the start level.
The counterparty chosen for this plan is Morgan Stanley & Co. International plc. Morgan Stanley & Co. International plc, an affiliate of Morgan Stanley, is the issuer of the underlying investments that are purchased on your behalf with the money you have invested.
Morgan Stanley & Co. International plc and its subsidiary undertakings are part of a group whose principal activity is the provision of financial services to corporations, governments and financial institutions. Morgan Stanley & Co. International plc is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the PRA and the United Kingdom Financial Conduct Authority. More information on Morgan Stanley & Co. International plc can be found on their website www.morganstanley.com.
You may lose part and up to all your investment if Morgan Stanley & Co. International plc goes into liquidation and defaults on paying your plan return and the repayment of your initial capital.
Don’t Forget the Risks
https://www.bestpricefs.co.uk/mariana-capital-structured-products/#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.
As always, if you require advice simply get in touch.
Warmest Regards.
Best Price FS Team