FTSE STOXX Defensive Kick Out Plan August 2018

A maximum 7 year, 3 week structured investment plan, offering a potential 9.5% pa gross return, provided the FTSE and EURO STOXX are at or above a reducing reference level.

Advised
Closing Date:
15 August 2018
ISA Transfers:
1 August 2018
Start Date:
17 August 2018
Maturity Date:
9 September 2025
Important: The closing date for applications by cheque is 6 August 2018 and by bank transfer is 12 August 2018.
Don't forget the risks
Product type:
Capital at Risk
Investment type:
Kick-Out
Market / index link:
FTSE 100 Index and EURO STOXX 50
Investment term:
7 years (maximum)
Kick-out / Early maturity:
Yes
Potential return:
9.5 % per annum
Barrier type:
End of term
Barrier level:
60%

CAPITAL AT RISK: The potential returns of this plan and repaying the money invested are linked to the level of the FTSE 100 Index and EURO STOXX 50 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.

Further Information

The FTSE STOXX Defensive Kick Out Plan August 2018 is a maximum seven year three week investment offering a potential gross investment return of 9.5% per annum. The capital and investment return are linked to the performance of the FTSE 100 and EURO STOXX 50.

If, on any Measurement Date before the Final Measurement Date, the Closing Levels of both Indices are at least equal to their respective Reference Levels, the Plan will kick out, i.e. mature early, and provide an investment return. If the Plan matures early on any Measurement Date, the gross investment return amount payable will be 9.5% of the money invested for each year that the Plan has been in force.

If, on a Measurement Date, before the Final Measurement Date, the closing evels of one or both Indices are below their Reference Levels, no investment return will be made and the Plan will remain in force.

The Reference Levels are as follows: year 1 at 100%; year 2 at 100%; year 3 at 100%; year 4 at 95%; year 5 at 95%, year 6 at 90% and year 7 (Final Level) at 85%.

The first Measurement Date will be one year after the Start Date. If an early maturity is not triggered on a Measurement Date, the Plan will remain in force until at least the next Measurement Date. In the event an early maturity is triggered, the gross investment return payable will be: 9.5% at year 1; 19% at year 2; 28.5% at year 3; 38% at year 4; 47.5% at year 5; and 57% at year 6.

If the Plan has not matured early and the Closing Levels of both Indices on the Final Measurement Date (the Final Levels) are at least equal to their Reference Levels, the Plan will provide an investment return at the Maturity Date equal to 66.5% of the money you invest. If the Final Levels of one or both Indices are below their Reference Levels, no investment return will be payable at the Maturity Date.

Please note an additional 0.25% charge will apply to this product if you require paper-based correspondence, rather than online communications from Meteor Asset Management.

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

Advised
Please note: This plan is available on an advised basis only. If you are interested in this plan, please telephone us on 01639 860 111 to arrange a free consultation.

1 Call 01639 860 111 for a free initial telephone consultation
Following the free initial 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.

How much does it cost to invest?

A minimum fee of £300 applies for ISAs, ISA transfers and Direct cash investments.

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.

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