iDAD FTSE UK 30 Callable Deposit Plan - December 2020
The IDAD UK 30 Callable Deposit Plan - December 2020 is a 7-year 1-week Deposit Plan based on the performance of the FTSE UK 30 Index. The Deposit Plan is constructed to offer a potential return of 2% per annum to the final Callable Observation Date if the Deposit Taker calls the investment early (please refer to the ‘Callable Feature’ for further information), or 50% participation in any growth of the FTSE UK 30 Index at maturity, capped at 28%.
The closing date for ISA transfer applications is 23 November 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
How to Invest?
Applications for the Plan must be submitted via Best Price Financial Services and received by 5pm on 7 December 2020 for bank transfer applications.
The closing date for applications by cheque is 30 November 2020
The closing date for ISA transfer applications is 23 November 2020.
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
This is a 7-year 1-week Deposit Plan based on the performance of the FTSE UK 30 Index. The Deposit Plan is constructed to offer a potential return of 2% per annum to the final Callable Observation Date if the Deposit Taker calls the investment early (please refer to the ‘Callable Feature’ below), or 50% participation in any growth of the FTSE UK 30 Index at maturity, capped at 28%.
If the Deposit Plan is not called early, at maturity, the investor receives a return of 50% of any positive growth in the FTSE UK 30 Index. For example, at maturity, if the FTSE UK 30 Index has risen 10% from the Initial Index Level, the investor will receive 100% of their investment back plus a 5% growth payment (10% X 50%).
The growth payment is capped at 128% of the Initial Index Level. Any rise of more than 28% above the Initial Index Level will not be passed onto investors. For example, if at maturity the Underlying Index had grown by 30% a return of 14% would be paid to the investor (28% X 50%).
The opportunity for full capital protection and growth is the key aim of this investment. The investment is linked to the FTSE UK 30 Yield Weighted Price Return Index (see page 6 of the brochure for full details) and investors will benefit from growth in the Underlying Index unless, the Deposit Taker, Goldman Sachs International Bank (GSIB)“ the deposit early, in which case investors would be paid a competitive fixed rate of return of 2% p.a. better than most current cash rates.
The initial investment, minus any initial Adviser Fee, will be returned in full on the Maturity Payment Date or if GSIB calls the Deposit Plan early, regardless of the performance of the Underlying Index, as detailed in the Key Observations table on page 5 of the brochure.
The Callable Feature what is this and when may this occur?
On each quarterly Observation Date, from the first quarter onwards, the Deposit Taker has the option to 'call' the Deposit Plan at their discretion. This means the Deposit Plan will be redeemed at that point and investors will receive their Initial Investment into the Deposit Plan, together with the fixed rate of return detailed above. For example, if the Deposit Taker calls the Deposit Plan on the eighth observation date (2 year anniversary), the investor would receive 100% of their Initial Capital plus a 4% return.
The callable feature provides GSIB with the ability to redeem the Deposit Plan early on any Callable Observation Date, details of which can be found on page 5 of the brochure.
The main reason this may happen is because GSIB believes the growth payment that could be paid out at maturity, may be higher than the Interest that has accumulated so far.
For example, if after 4 years the Underlying Index has grown by 20% and seems set to continue growing, the Deposit Taker may feel that they will be better off redeeming the Deposit Plan and paying 4 years of the fixed annual return, rather than potentially paying the Index related return once the Deposit Plan matures.
Goldman Sachs International Bank (GSIB)
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.
GSIB are the Deposit Taker for the Callable Deposit Plan 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 Deposit Plan.
GSIB has the following credit ratings from the major rating agencies¹ S&P A+, Moody’s A 1 Fitch A+ If you are unsure of the implications of the Deposit Taker Risk (see Risk section on page 10 your adviser will be able to discuss it in more detail.
¹Source Bloomberg 20/10/2020
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: