Hilbert Kick Out Series: 3 Stock Defensive Autocall - Issue 5

Hilbert Investment Solutions

Hilbert Kick Out Series: 3 Stock Defensive Autocall - Issue 5

Opportunity for a Fixed Growth Return, depending on the performance of Barclays Plc, Aviva Plc and Vodafone Group Plc. Maximum 7 year term (but your investment could mature early from the first semi annual observation date) Issued by Citigroup Global Markets Funding Luxembourg S.C.A. Capital is not protected, and you may lose some or all of your investment

  • Potential return: 17 % per annum (8.5% Semi Annually)
  • Product type: Capital at Risk
  • Investment type: Auto-Call/Kick-Out
  • Closing Date: 17 September 2020
  • ISA Transfer: 11 September 2020
  • Start Date: 18 September 2020
  • Maturity Date: 5 October 2027
  • Market / index link: Barclays PLC, Aviva PLC, Vodafone Group PLC
  • Counterparty: Citigroup Global Markets Ltd
  • Investment term: 7 years
  • Kick-out / Early maturity: Yes
  • Barrier type: End of term
  • Barrier level: 50%
Important: The closing date for applications by cheque is 7 September 2020 and by bank transfer is 14 September 2020.
The closing date for ISA transfer applications is 7 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

Term of Investment  :  Up to 7 years, however, the Plan can mature early from the first semi-annual observation date, if certain criteria are met (see “Early Maturity” below).

Underlying Assets  :  The share price of Barclays Plc, Aviva Plc, Vodafone Group Plc as listed on the London Stock Exchange (‘The Shares’).

Counterparty  :  Citigroup Global Markets Funding Luxembourg S.C.A. (‘Citigroup’)

Administrator and Custodian  :  Hilbert Investment Solutions/The Bank of New York Mellon.

Early Maturity  :  The Plan will mature early if the Closing Levels of all three Underlying Assets are at least equal to the relevant Reference Level on any Semi-Annual Measurement Date from the end of the first 6-month period.  If this happens, you will receive a Fixed Growth Return equal to 8.5% for each semi-annual observation date that has passed since the Start Date.  You will also be repaid your original investment in full at this point.

Repayment of Your Investment if no Early Maturity  :  If the Final Level of any of the Underlying Assets is more than 50% below its Opening Level, you will receive back significantly less than your initial investment.  The amount of your investment you receive back will be reduced by the same percentage amount that the worst performing Underlying Asset has fallen in value from the Start Date.

Expected Tax Treatment  :  Capital Gains Tax

Fees  :  Hilbert will receive a one-off distribution fee of up to 2.5% to cover their costs for marketing the Plan.  No part of this fee is used to pay a financial adviser.

Please note the investment deadlines below:

ISA transfer deadline: 11th September 2020 – applications to be received by Best Price by 7th September 2020

If you are paying by cheque: 11th September 2020 - applications to be received by Best Price by 7th September 2020

If you are paying by bank transfer: 17th September 2020 – applications to be received by Best Price by 11th September 2020

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.