FTSE STOXX Defensive Step Down Kick Out Plan 16
A maximum six year structured investment plan linked to the performance of the FTSE 100 and EURO STOXX 50 Index. The Plan can mature at the end of years 2, 3, 4, 5 or 6 with a fixed payment equal to 7.65% per annum (not compounded), if both the FTSE 100 and EURO STOXX 50 is above a reducing percentage of its starting level.
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?
Applications for the Plan must be submitted via Best Price Financial Services and received by 5pm on 13 January 2019 for bank transfer applications.
The closing date for applications by cheque is 7 January 2019
The closing date for ISA transfer applications is 19 December 2018.
This will enable us to process your application and forward it on to the structured product provider.
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
The FTSE STOXX Defensive Step Down Kick Out Plan 16 is designed to repay your initial investment and deliver a return dependent on the performance of the FTSE 100 and EURO STOXX 50.
Potential for maturity at the end of years 2, 3, 4, 5 or 6 with a fixed payment equal to 7.65% per annum (not compounded), if both the FTSE 100 and EURO STOXX 50 are higher than a specified percentage of their starting levels.
The Reference Levels are as follows: year 2 at 100%; year 3 at 95%; year 4 at 85%; year 5 at 75% and year 6 (Final Level) at 65%
If the Plan continues to the end of year 6, the closing levels of the FTSE 100 are used to calculate the Final Index Level, as explained below:
- If both the Final Index Levels of the FTSE 100 and EURO STOXX 50 are higher than 65% of their respective Initial Index Levels, you will receive back your initial investment plus 45.9%.
- If either Final Index Level is equal to or lower than 65% of its Initial Index Level, you will receive back your initial investment with no return.
- If either Final Index Level is lower than 60% of its Initial Index Level then your initial investment will be reduced by 1% for every 1% fall (including partial percentages) in the worst performing index. For example if the Final Index Level of the FTSE 100 has fallen by 50% from its Initial Index Level, and the Final Index Level of the EURO STOXX 50 has fallen by 20% from its Initial Index Level then your initial investment will be reduced by 50%.
This FTSE STOXX Defensive Step Down Kick Out Plan 16 has been designed for clients who are looking for equity-linked returns over a 6 year period, but can accommodate receiving their money back before the end of the term. The payoff profile has been designed to suit clients who are cautious on equity market growth. Clients are likely to have a medium to high attitude to risk and be prepared to risk their capital in order to potentially achieve higher returns. This product is aimed at clients who can understand a more complex product and have a higher attitude to risk when compared to a single index equivalent. This product is aimed at a more market cautious client who has high financial sophistication.
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: