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STRUCTURED PRODUCTS NEWS UPDATE

dual index
Dual Index  & Income and growth- Mariana have launched another tranche of their 10:10 plans for May 2021, including their Income and Growth Plan and a Dual Index Income Kick-Out Plan – July 2021.  A summary of each plan is provided below.  The Mariana 10:10 Plan (FTSE CSDI Version) – May 2021 Plans – Options 1, 2 & 3 are available on a Non-Advised basis, however the Mariana 10:10 Income and Growth Plan – May 2021 and Mariana Dual Index Income Kick Out Plan – July 2021 are only available with Advice so please make sure you use the links below to contact us so we can work with you.

As always this is a limited tranche and it Strikes on the 21st May.  Combined with great potential returns, Structured Investments like this allow you to put to one side current media commentary/market nerves and focus on the pre-defined outcomes offered to Investors going forward.  Couple this with the fact that you can complete the whole investment process very simply, as there is no need for wet signatures, you can complete each investment with email & scanned documentation plus online Banking, you can however still post your applications if you prefer.

Please note that for some ISA Transfer cases original wet signature paperwork is still required which is outside the control of Mariana and this needs to be received by James Brearley by the 27th April.

This investment tranche of the Mariana 10:10 (FTSE CSDI Version) Plan Dual Index  & Income and growth May 2021 is underwritten with Citigroup (S&P A+ Stable) as the chosen Counterparty.

Key Points to consider about the Mariana 10:10 (FTSE CSDI Version) Plan – May 2021:

1.  The product continues to be available in three formats all of which are linked exclusively to the FTSE CSDI Index.

2.  NB The correlation of the FTSE CSDI to the FTSE100 over a 10 year simulated back-test is 98.25%.

3.  All options provide the opportunity to achieve attractive returns in a controlled/pre-defined manner as part of a diversified and well balanced portfolio in uncertain and flat market conditions.

4.  The Plan Strike date for all Options is the 21st May.

5.  Remember that the longer the Plan runs in practice, the higher the equivalent Market would need to get in order for an investor’s main portfolio to match the returns offered.

6.  The Back-testing of structured products is a precise science – as the actual terms of the strategy, which are defined by contract, are used with the actual performance of the index. (these are not ‘hopes and aims’, as is the case with active fund management, or even passive, where tracking error, charges, etc., have a bearing: structured products are legal obligations on the issuer to deliver precisely what they have stated the terms to be).

7.  One of the key advantages of the 10:10 Plan continues to be that it has been designed to combine the benefits of short term annual kick-out potential, from the second anniversary, with a longer investment term to maximise the annual opportunities for successful kick out and the scale of snowballing / accumulation of potential coupons before maturity.

As already mentioned, the counterparty for the Mariana 10:10 Plan (FTSE CSDI Version) – May 2021 is Citigroup Global Markets Limited.  The counterparties for the two ‘Advised’ Dual Index  & Income and growth plan is Morgan Stanley & Co International Plc and you’ll see a description of them below, but again click on the links to see more information.

Once again, thanks for your continued interest in our Investment services and look forward to transacting more business with you shortly.

dual index
Mariana 10:10 Plan FTSE CSDI Version – May 2021

Dual Index  & Income and growth- This is a ten year, two week Plan based on the performance of the FTSE™ Custom 100 Synthetic 3.5% Dividend Index, the Underlying Asset. The Plan has three options and is constructed to offer a Potential Return of 7.10% in Option 1, 9.15% in Option 2 and 11.20% in Option 3 for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.

Should the Closing Price of the Underlying Asset on an Observation Date be at or above the Kick Out Trigger Level, the Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.

The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 22 May 2023 to 21 May 2031).

If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (21 May 2031) the Closing Price of the Underlying Asset is not more than 30% below the Start Level.

If on the Maturity Date the Closing Price of the Underlying Asset is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.

Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – May 2021 OPTION 1
Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – May 2021 OPTION 2
Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – May 2021 OPTION 3
About Citigroup Global Markets Limited: The Counterparty chosen for this Plan is Citigroup Global Markets Limited (GGML), Citigroup Global Markets Funding Luxembourg S.C.A, an affiliate of CGML, is the issuer of the underlying investments that are purchased on your behalf with the money you have invested. The investments are constructed to generate the terms described in this Brochure.
CGML.
Dual Index  & Income and growthCGML is Citi’s international broker-dealer and is headquartered in London.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.More information on Citi can be found on their website www.citigroup.com or by requesting a copy of their prospectus from Mariana.

The prospectus contains information and contractual terms for the securities issued by Citigroup Global Markets Funding Luxembourg S.C.A. CGML acts as Guarantor of the securities issued by Citigroup Global Markets Funding Luxembourg S.C.A, which means that CGML will make the payments under the securities if Citigroup Global Markets Funding Luxembourg S.C.A is unable to fulfil its payment obligations.

You may lose part and up to all your investment if CGML goes into liquidation and defaults on paying your Plan return and the repayment of your Initial Capital. The risk that CGML goes into liquidation is called Counterparty Risk.

Securities issued by Citigroup Global Markets Funding Luxembourg S.C.A and CGML are not covered by the Financial Services Compensation Scheme (FSCS). Therefore if the Issuer and/or the Guarantor become insolvent you would not be covered by the FSCS.

dual index

Mariana 10:10 Income and Growth Plan – May 2021

This is a ten year Plan based on the performance of the FTSE™ Custom 100 Synthetic 3.5% Dividend Index, the Underlying Asset. The Plan is constructed to offer a Potential Income of 0.75% per quarter providing the Closing Price of the Underlying is at or above 70% of the Start Level on a quarterly Observation Date. If the Closing Price of the Underlying is below 70% of the Start Level on a quarterly Observation Date, no income is paid for that quarter.

You will only receive the quarterly Potential Income if the income criteria is fulfilled on a quarterly Observation Date. To note, if, on every one of the quarterly Observation Dates the income criteria is not fulfilled, you will receive no Potential Income throughout the term of the Plan.

The Plan has the possibility to kick out on a quarterly basis from the end of year 3. Should the Closing Price of the Underlying be at or above 105% of the Start Level on any one of the kick out Observation Dates, the Plan will mature early paying the Potential Income for that quarter and returning Initial Capital in full, plus the Potential Return of 1% multiplied by the number of quarters the Plan has run. For the avoidance of doubt, if the Plan kicks out, no more Potential Income will be due.

If the Plan has not already kicked out, Initial Capital will be returned in full at the end of the Plan’s term if on the Maturity Date (21 May 2031) the Finish Level of the Underlying is not more than 30% below the Start Level.

You are at risk of losing your capital if the Closing Price of the Underlying is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying is below the Start Level.

Click here for more details of the Mariana 10:10 Income and Growth Plan – May 2021
dual index

Mariana Dual Index Income Kick Out Plan – July 2021

This is a six year, two week Plan based on the performance of the FTSE™ 100 and S&P 500® Indices, the Underlyings. The Plan is constructed to offer a Potential Income of 1.65% per quarter (6.6% p.a) providing the Closing Price of both the Underlyings is at or above 80% of the Start Level on a quarterly Observation Date. If the Closing Price of any one of the Underlyings is below 80% of the Start Level on a quarterly Observation Date, no income is paid and the income for that period is permanently lost.

You will only receive the quarterly Potential Income if the income criteria is fulfilled on a quarterly Observation Date. To note, if, on all of the quarterly Observation Dates the income criteria is not fulfilled, you will receive no Potential Income throughout the term of the Plan.

The Plan has the possibility to kick out from the end of year 1 and quarterly thereafter. Should the Closing Price of both the Underlyings be at or above 100% of the Start Level on any one of the kick out Observation Dates, the Plan will mature early paying the Potential Income for that quarter and returning Initial Capital in full (subject to Counterparty Risk).

If the Plan has not already kicked out, Initial Capital will be returned in full at the end of the Plan’s term if on the Maturity Date (02 July 2027) the Finish Level of the worst performing Underlying is not less than 65% of the Start Level.

You are at risk of losing your capital if the Closing Price of the worst performing Underlying is less than 65% of the Start Level (representing a decline of more than 35% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the worst performing Underlying is below the Start Level.

Click here for more details of the Mariana Dual Index Income Kick Out Plan – July 2021

About Morgan Stanley & Co. International plc: Morgan Stanley & Co. International plc and its subsidiary undertakings are part of a group whose principal activity is the provision of financial services to corporations, governments and financial institutions. Morgan Stanley & Co. International plc is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the PRA and the United Kingdom Financial Conduct Authority.

More information on Morgan Stanley & Co. International plc can be found on their website www.morganstanley.com or by requesting a copy of their prospectus from Mariana. The prospectus contains information and contractual terms for the securities issued by Morgan Stanley & Co. International plc.

You may lose part and up to all your investment if Morgan Stanley & Co. International plc goes into liquidation and defaults on paying your Plan return and the repayment of your Initial Capital. The risk that Morgan Stanley & Co.
International plc goes into liquidation is called Counterparty Risk.

Securities issued by Morgan Stanley & Co. International plc. and Morgan Stanley are not covered by the Financial Services Compensation Scheme (FSCS). Therefore if the Issuer and/or the Guarantor become insolvent you would not be covered by the FSCS.

Don’t Forget the Risks

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

At the Best Price FS price point (when combined with our smiley and helpful service) the Mariana Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.