IDAD Goldman Sachs 4 Year Memory Income Kick Out Plan - Issue 1

IDAD

IDAD Goldman Sachs 4 Year Memory Income Kick Out Plan - Issue 1

The iDAD Goldman Sachs 4 Year Memory Income Kick Out Plan - Issue 1 is a capital at risk investment which offers a total of 12 kick out points. The first kick out point is after 1 year and then every 3 months. Contingent coupons of 1.6% will be paid every quarter (6.4% p.a.)

  • Potential return: 6.4 % p.a. (1.6% p.q.)
  • Product type: Capital at Risk
  • Investment type: Income/Kick-Out
  • Closing Date: 13 November 2020
  • ISA Transfer: 30 October 2020
  • Start Date: 27 November 2020
  • Maturity Date: 27 November 2024
  • Market / index link: FTSE™ 100 Index ; NASDAQ-100 Index ; EURO STOXX 50 Index
  • Counterparty: Goldman Sachs International
  • Investment term: 4 years 1-week
  • Kick-out / Early maturity: Yes
  • Barrier type: End of Term
  • Barrier level: 60%
  • Minimum Investment Amount: £10000
Important: The closing date for applications by cheque is 6 November 2020 and by bank transfer is 13 November 2020.
The closing date for ISA transfer applications is 30 October 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

The iDAD Goldman Sachs 4 Year Memory Income Kick Out Plan - Issue 1 is a capital at risk investment which offers a total of 12 kick out points.  The first kick out point is after 1 year and then every 3 months.  Contingent coupons of 1.6% will be paid every quarter (6.4% p.a.).

Investment Description

If on any of the quarterly observation dates, the closing levels of all Underlying Indices are at or above 80% of their initial levels, the income will be paid (1.6% per quarter) plus any previous missed payments.

This Plan will Kick out and mature early if all the Underlying Indices are equal to or above 98% their Initial Levels on any quarterly observation date starting at 12 months. If early maturity occurs, full capital is returned plus any income due for that quarter and the Plan will end. If early maturity does not occur the Plan will continue to the Final Observation date.

At the Final Observation date, if all the Underlying Indices are at or above 60% of their Initial Levels, then full capital is returned. If any Underlying is below 60% of its Initial Level, capital return will be reduced on a 1-for-1 basis. For example if the worst performing Underlying has fallen to 40% of its Initial Level, 40% of the capital will be returned.

The Underlyings*

The FTSE™ 100 Index represents the performance of shares in the most valuable companies listed on the London Stock Exchange. The components are the largest companies by Market Capitalisation (which measures the value of all the shares outstanding in that company, regardless of where they’re held). The Index weights companies by size, so the largest companies in the Index have the greatest effect on its performance and most of these have strong international exposure, which means the Index isn’t solely representative of the UK economy.

The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985. Prior to December 21, 1998 the Nasdaq 100 was a cap-weighted index.

The EURO STOXX 50 Index, Europe's leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region. The index covers 50 stocks from 11 Eurozone countries. The index is licensed to financial institutions to serve as an underlying for a wide range of investment products such as exchange-traded funds (ETFs), futures, options and structured products.

Issuer

Goldman Sachs International Bank (GSIB) offers investment banking, securities and investment management services to corporations, financial institutions, governments and high net worth individuals worldwide GSIB also operates an online retail banking service in the United Kingdom through its trading name Marcus by Goldman Sachs The company is part of the Goldman Sachs Group, a US based banking and financial services organization GSIB is registered in England and Wales (no. 1122503 and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Goldman Sachs & Co are the Issuer for the 4 Year Memory Income Kick Out Plan and therefore investors are exposed to the risk of them defaulting on their obligation to repay the capital and any returns due under the terms of the Plan. GSIB has the following credit ratings from the major rating agencies S&P A+, Moody’s A1, Fitch A. *

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.