Long Kick-Out Plan December 2019 : Part 2 - Option 2
A maximum ten year structured investment product, that offers the potential for early maturity from the end of year 3 with a fixed return of 8.55% per year, that accumulates (in other words, builds up) for each year that the plan runs, and is paid if the FTSE 100 FDEW closes at or above a reducing percentage of the start level on one of the kick-out anniversary dates or on the end date. This level is set at 100% of the start level on the first kick-out anniversary date and then reduces by 5% each year, to 65% of the start level on the end date.
The closing date for ISA transfer applications is 8 November 2019.
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.
The Tempo FTSE 100 FDEW Long Kick-Out Plan: December 2019 (Option 2) is a maximum 10-year term product linked to the UK stock market, which offers three options, all of which are designed to generate a fixed level of return on one of the kick-out anniversary dates from the 3rd year.
The potential return of the plan depends on the level of the UK stock market, represented by the FTSE 100 FDEW. We have designed the plan so that if the level of the FTSE 100 FDEW triggers a ‘kick-out’ on one of the kick-out anniversary dates, the plan will pay the accumulated returns for each year that it has run together with the money invested, and automatically mature at this point. None of the options need the FTSE 100 FDEW to rise in order for the return to be paid. In addition, all of the options provide a defined level of protection at the end date, if it falls.
If the FTSE 100 FDEW closes at or above a reducing percentage of the start level on one of the kick-out anniversary dates (set at 100% of the start level for year 3 and reducing by 5% each year to 65% of the start level on the end date), option 2 will generate a return of 8.55% for each year that the plan has run.
Market risk to potential returns
Whether or not the plan generates a return for investors depends on the closing level of the FTSE 100 FDEW on each of the kick‑out anniversary dates and on the end date, for the plan option or options investors choose. If the FTSE 100 FDEW closes below the level needed, for the plan option or options investors choose, on all of the kick-out anniversary dates and on the end date, the plan will not generate a return.
Market risk to repayment of money invested
If the closing level of the FTSE 100 FDEW is below the level needed on all of the kick‑out anniversary dates (including the end date), repaying the money invested at maturity will depend on the closing level of the FTSE 100 FDEW on the end date.
If on the end date the FTSE 100 FDEW closes at or above 60% of the start level, money invested will be repaid in full (less any agreed adviser fees and withdrawals).
However, if on the end date the FTSE 100 FDEW 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 FTSE 100 FDEW has fallen. For example, if the FTSE 100 FDEW has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).
Issuer and Counterparty Bank risk
Both the potential returns of the plan, and repaying the money invested, depend on the financial stability of the Issuer and Counterparty Bank.
The investments for the plan are issued by SG Issuer, which is part of Société Générale, the Counterparty Bank for the plan.
If SG Issuer and Société Générale 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.
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: