Goldman Sachs FTSE 100 Deposit Kick Out - Dual Option (Option 2) - August 2024
This is a maximum 6-year, 1-week investment offering a Potential 6.35% return on investment for each year the Deposit Plan runs, paid gross. The Potential Return will only be paid if the Deposit Plan kicks out.
- Potential return: 6.35 % for each year the Deposit Plan runs, paid gross. The Potential Return will only be paid if the Deposit Plan kicks out
- Product type: Deposit Based
- Investment type: Growth/Kick-Out
- Closing Date: 9 August 2024
- ISA Transfer: 24 July 2024
- Start Date: 16 August 2024
- Maturity Date: 16 August 2030
- Market / index link: FTSE 100 Index
- Counterparty: Goldman Sachs International
- Investment term: 6 years, 1 week
- Kick-out / Early maturity: Yes
- Barrier type: Not Applicable (Structured Deposit)
- Barrier level: N/A
The closing date for ISA transfer applications is 24 July 2024.
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?
Applications for the Plan must be submitted via Best Price Financial Services and received by 5pm on 9 August 2024 for bank transfer applications.
The closing date for applications by cheque is 7 August 2024
The closing date for ISA transfer applications is 24 July 2024.
This will enable us to process your application and forward it on to the structured product provider.
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
This is a six year, one week Deposit Plan based on the performance of the FTSE™ 100 Index, the Underlying Asset. The Deposit Plan has two options and is constructed to offer a Potential Return of 6.35% in Option 2 for each year the Deposit Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Deposit Plan’s third year and annually thereafter. The Potential Return is only payable if the Deposit 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 Deposit Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Deposit Plan has run.
The Kick Out observations begin on the fourth anniversary date and continue on an annual basis until the Deposit Plan’s Maturity Date (from 16 August 2028 to 16 August 2030).
If the Deposit Plan has not already kicked out, Initial Capital is returned in full on the Maturity payment Date regardless of the performance of the Underlying.
The repayment of Initial Capital and the payment of any returns are subject to Counterparty Risk.
The Deposit Taker chosen for this Deposit Plan is Goldman Sachs International Bank. The Deposit Taker (also known as the Counterparty), is the institution with which your Initial Capital will be invested in the Structured Deposit described in this brochure.
Goldman Sachs International Bank
Goldman Sachs International Bank is part of The Goldman Sachs Group, Inc. which is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
You may lose all or part of your investment if Goldman Sachs International Bank collapses, becomes bankrupt or goes into liquidation and defaults on paying your Deposit Plan return and the repayment of the Initial Capital. The risk that Goldman Sachs International Bank collapses, becomes bankrupt or goes into liquidation is called Counterparty Risk.
Should Goldman Sachs International Bank collapse, become bankrupt or go into liquidation, you may be eligible for compensation under the Financial Services Compensation Scheme (FSCS). Further details in relation to compensation arrangements are set out in the section entitled ‘Where is my money and can I lose it?’.
The Deposit Plan is not endorsed, sponsored or otherwise promoted by Goldman Sachs International Bank or any of its affiliates.
None of Goldman Sachs International Bank or its affiliates is responsible for the contents of this brochure and nothing in this document should be considered a representation or warranty by Goldman Sachs International Bank to any person regarding whether investing in the Deposit Plan is suitable or advisable for such a person. Neither Goldman Sachs International Bank, nor any of its affiliates, has provided advice, nor made any recommendation about investments or tax in relation to this Deposit Plan.
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.
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.
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.