Causeway Securities Memory income Kick-Out Plan

Causeway Securities

Causeway Securities Memory income Kick-Out Plan

The Causeway Securities Memory Income Kick-Out Plan is a capital at risk investment with a potential return of 1% per quarter (4% per annum) paid gross

  • Potential return: 4 % p.a. paid gross
  • Product type: Capital at Risk
  • Investment type: Income/Kick-Out
  • Closing Date: 2 October 2020
  • ISA Transfer: 18 September 2020
  • Start Date: 9 October 2020
  • Maturity Date: 23 October 2023
  • Market / index link: FTSE 100 Index and S&P 500 Index
  • Counterparty: Morgan Stanley
  • Investment term: 3 years
  • Kick-out / Early maturity: Yes
  • Barrier type: End of Term
  • Barrier level: 65%
  • Minimum Investment Amount: £10000
Important: The closing date for applications by cheque is 21 September 2020 and by bank transfer is 28 September 2020.
The closing date for ISA transfer applications is 14 September 2020.

Product Literature & Forms

You should always read the relevant plan brochure and any other plan documentation, for full details of the plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document ('KID'), that you should consider, before deciding to invest in the plan.

If you do not fully understand the risks or are unsure as to the suitability of the investment, please contact us

Complete the form and we will email you the requested literature and instructions on how to invest.

Select the application form you require

How to Invest?

1 Firstly, print off and complete our Appropriate Assessment Questionnaire. All applications require two proofs of identity - see the questionnaire for more information.

2 Next download, print and complete the application form available. Note that product applications will have multiple documents, so please choose the one relevant to you.

3 Place all completed documents - questionnaire, proofs of identity, application form and cheques for payment - in an envelope and post to:

Best Price Financial Services,
The Tythe Barn, 5 Eglwys Nunnydd,
Margam, Neath Port Talbot
SA13 2PS

Further Information

The Causeway Securities Memory Income Kick-Out Plan is a capital at risk investment with a potential return of 1% per quarter (4% per annum) paid gross

Income

If the Closing Level of each Underlying Asset on any Quarterly Income Observation Date, is at or above 65% of its respective Opening Level, the Plan will pay a gross income of 1% for that quarter. No Income will be payable for a quarter if the Closing Level of each Underlying Asset is below 65% of its Opening Level on the Quarterly Income Observation Date. The Plan includes a Memory feature, which allows previously missed income payments to be recaptured, in addition to the income payment then due.

The first quarterly Income Observation Date will be 11 January 2021, one quarter after the Start Date. Thereafter, the performance of each Underlying Asset will be measured quarterly. If the Kick-Out Barrier is met (see below), income will be paid in respect of that quarter and any previous quarters; and the Plan will mature early. No further income payments will then be payable.

Kick Out Barrier

The Plan will Kick-Out if the respective Closing Level of each Underlying Asset, on any annual Kick-Out Observation Date, is at or above 110% of its respective Opening Level. In this event an investor will receive their Initial Capital back, plus an income payment of 1% due for that quarter and any previously missed income payments. The first annual Observation Date on which an early maturity could be triggered will be 11 October 2021, 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 worst performing Underlying Asset is less than 65% of the 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 worst performing Underlying Asset is below the Opening Level.

Quarterly Income Observation Dates

11th January 2021, 9th April 2021, 9th July 2021, 11th October 2021, 10th January 2022, 11th April 2022, 11th July 2022, 10th October 2022, 9th January 2023, 11th April 2023, 10th July 2023.

Kick Out Observation Dates

11th October 2021, 10th October 2022.

Counterparty Risk

The Counterparty of the Securities is Morgan Stanley & Co. International plc. If Morgan Stanley & Co. International plc 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(s).

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 Income Tax. Investors should obtain their own tax advice.

Don’t forget the risks

All investments carry risk. It is identifying those risks, understanding how they may affect an investment and assessing whether an investment is suitable for your circumstances that is important.

The potential returns of most structured products and repaying the money invested are usually linked to the level of a stock market index and also depend on the financial stability of the issuer and counterparty bank. You should only consider investing if you understand and accept the risk of losing some or all of any money invested.

You should always read the relevant plan brochure and any other plan documentation, for full details of a plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document (‘KID’), that you should consider, before deciding to invest in a plan.

Structured products should only be considered as part of a diversified and balanced portfolio.

Below is a summary of some of the main risks usually associated with an investment in structured products plans:

Market risk to potential returns

Whether or not a plan generates the potential returns for investors usually depends on the closing level of the relevant index on the relevant dates for the plan, i.e. the kick-out anniversary dates for kick-out products; the early maturity dates and end dates for growth products; the annual income dates for income products.

If the index closes below the level needed, for the plan or plan options chosen, on all of the relevant dates, the plan or plan options will not generate a return.

Market risk to repayment of money invested in 'Capital-at-Risk' plans

If the closing level of the relevant index is below the level needed on all of the kick-out anniversary dates or early maturity dates, if relevant for the plan or plan options chosen, and on the end date, repaying the money invested at maturity will usually depend on the closing level of the index on the end date..

Different structured products use different types of protection barriers. Some products use barriers that are observed every day that can therefore be breached on any day during the investment term, while some products use barriers that are only observed at the end of the investment term and that cannot therefore be breached during the investment term.

Market risk to the repayment of money invested on the end date will depend on the type of barrier and its level.

For example, for a product with an end of term barrier, set at 60% of the start level, if the index for the plan closes at or above 60% of the start level, on the end date, money invested will be repaid in full (less any agreed adviser fees and withdrawals). However, if on the end date the index closes below 60% of the start level, the amount of money repaid (less any agreed adviser fees and withdrawals) will be reduced by the amount that the index has fallen. For example, if the index has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).

'Protected' types of structured products

Some structured product plans are designed so that they are 100% protected from stock market risk at the end date.

It is important to understand that even if a structured product plan is designed with 100% protection from stock market risk, at the end date, it will still usually have issuer and counterparty bank risk. In other words, both the potential returns of the plan and repaying the money invested at the end date will depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Issuer and counterparty bank risk

Both the potential returns and repaying the money invested of most structured products depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.

Financial Services Compensation Scheme ('FSCS') protection

It is important to understand that it is not usually possible to claim under the Financial Services Compensation Scheme if the issuer and counterparty bank fail to meet their obligations or if the stock market index that a plan links to falls.

Structured deposits

Structured deposit plans are deposit-based and will usually be fully protected from stock market risk at the end date and also benefit from the protection of the Financial Services Compensation Scheme, if the bank or building society is a licensed UK deposit taker.