iDAD Societe Generale FTSE™ 100 Kick Out Plan – Issue 1
This is a capital at risk investment plan with a term up to 5-years 1-week offering potential returns of 8.50% p.a. if the FTSE 100 is at or above 100% of Initial Level at the Observation Dates. This plan is only available on an 'Advised' basis.
The closing date for ISA transfer applications is 25 February 2021.
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.
This Plan provides investors with the opportunity to earn 8.50% p.a. if the Underlying market Index remains flat or rises. If the closing level of the Underlying Index on any early observation date (set out on page 3 of the brochure) before the Final Valuation Date is at least equal to or above the Kick Out Trigger Level, the Plan will kick out, i.e. mature early and make a gross investment return of 8.50% for each year that the Plan has been in force.
The first early observation date is the 18 March 2022, one year after the Plan Start Date. If the Plan has not matured early, and the closing level of the Underlying Index on the Final Valuation Date (the ‘Final Levels’) is at least equal to or above Kick Out Trigger Level, the Plan will provide an investment return at the Maturity Date equal to 142.50% made up of 100% of your investment plus a 42.50% return, (5 x8.50%) of the money you invested.
Capital Protection Barrier
At the final observation date, if the Underlying Index is at or above 65% of its Initial Level, then full capital is returned. Otherwise, if the Underlying is below 65% of its Initial Level, your capital will be at risk. The capital will be reduced by 0.10% for each day the Index has closed below the 65% barrier during the life of the Plan. For example, if the Underlying has fallen below 65% of its Initial Level for 50 days during the life of the Plan, 5% of capital will be deducted from the initial investment (0.10% x 50 days = 5%). A full capital loss may be sustained if the Underlying Index is below the Capital Protection Barrier for 1000 days or more.
What is the aim of using a daily Capital Protection Barrier?
The aim of the daily Capital Protection Barrier is to reduce the risk of a capital loss being sustained based on one observation date only (i.e. at maturity). Any capital loss will instead be accrued based on the number of days the Underlying Index closes below the Capital Protection Barrier. The goal of such a feature is to prevent significant losses occurring due to one off large drops, when in fact the investors general view of the Underlying Index may have been correct during most of the Plan's life.
What else should be considered with a daily Capital Protection Barrier?
The capital loss you might incur at maturity will be accrued throughout the life of the Plan. The longer the Underlying Index remains below the Capital Protection Barrier the greater the capital loss at maturity.
A capital loss will be sustained at maturity if the Underlying Index is below the defined Capital Protection Barrier at maturity.
The size of the capital loss will be determined by the number of days the Underlying index has been below the Capital Protection Barrier during the Plan’s life.
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: