iDAD The Enhanced Callable Deposit Plan Issue 4 - March 2022
The iDAD Enhanced Callable Deposit Plan Issue 4 - March 2022 is a six-year one-week investment offering an interest rate of 7% per annum (1.75% per quarter) paid if the Deposit Taker 'calls' the product on any observation date prior to its maturity date.
The closing date for ISA transfer applications is 17 February 2022.
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
How to Invest?
Please note: This plan is available on an advised basis only. If you are interested in this plan, please telephone us on 01639 860111 to arrange a free consultation
1 Call for a free initial telephone consultation. If you wish to progress the process of the product purchase, the regulatory process of ‘advice’ must commence.
2 The completion of a financial review – which will confirm details of your income/capital and investment needs and experience
3 The completion of a risk profiler - which will help to measure your attitude to risk.
This process will enable ‘advice’ to be provided in relation to the suitability of the product to meet with your needs. The fee for this service and process is 1.5% (subject to a minimum fee of £300) for focused advice – which is focused and narrowed to the suitability of the structured product you want to purchase.
This is a 6-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 7.00% p.a. to the final Callable Observation Date if the Deposit Taker 'calls' the investment early or 250% 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 250% of any positive growth in the FTSE 100 Index.
Important Notice: In order for GSIB to deliver the enhanced benefits, an Initial Payment of 5% will be taken from the Total Initial Investment. For example; with a £10,000 Total Initial Investment, £9,500 (the Net Deposit Amount) will be invested into the Deposit Plan. The 5% Initial Payment issued by GSIB to enhance the terms of the Plan.
The Plan offers 95% capital protection plus growth which are the key aims 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 calls the deposit early, in which case investors would be paid a competitive fixed rate of return of 7.00%p.a.
The Total Initial Investment into the Plan minus the 5% Initial Payment and any initial adviser fee taken if applicable 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, the Deposit Taker has the option to call the Deposit Plan at their discretion. This means the Deposit Plan will be redeemed at that point and investors will receive their Net Deposit Amount, together with the fixed rate of return of 7.00% p.a. (1.75% 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.
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: