fbpx

Investment & Insurance Blog

Currently browsing Latest Posts

Causeway Securities plans for October 2022

  • Wednesday, August 24, 2022

CAUSEWAY SECURITIES LAUNCH NEW TRANCHE OF PLANS FOR OCTOBER 2022
 

We are writing to let you know that Causeway Securities have launched a new tranche of plans for October 2022:

FTSE 100 Fixed Monthly Income Plan – October 2022The Causeway Securities FTSE 100 Fixed Monthly Income Plan – October 2022, issued by Morgan Stanley, offers a fixed income of 0.4225% paid monthly (5.07% per annum) over the 5 year term irrespective of the performance of the FTSE 100 Index.  The first income payment made to the Plan administrator will be 28 November 2022 and monthly thereafter.
FTSE 100 Kick-Out Plan – October 2022                                        

The plan, issued by Morgan Stanley, offers potential investment returns of 9.3% per annum paid gross, over a maximum 6-year term. The plan will mature early if the FTSE 100 is equal to or above its start level, observed annually from year 3.

FTSE 100 Defensive Step Down Kick-Out Plan – October 2022

The plan, issued by Morgan Stanley, offers potential investment returns of 7% per annum paid gross, over a maximum 8-year term. The plan will mature early if the FTSE 100 is equal to or above a reducing reference level, observed annually, beginning at 105% of start level in year 3, 95% in year 4, then reducing by 5% each year to 75% in year 8.

FTSE 100 Defensive Kick-Out Plan – October 2022                                        

The plan, issued by Morgan Stanley, offers potential investment returns of 7.7% per annum paid gross, over a maximum 6-year term. The plan will mature early if the FTSE 100 is equal to or above 90% of its start level, observed annually from year 3.
Key Dates for all plans:

ISA transfer deadline: 23 September 2022
Application form and monies deadline: 7 October 2022
Start Date: 14 October 2022

A brief summary of each plan is detailed below.
Causeway Securities FTSE 100 Fixed Monthly Income Plan – October 2022Potential Investment Return: The Causeway Securities FTSE 100 Fixed Monthly Income Plan – October 2022, issued by Morgan Stanley, offers a fixed income of 0.4225% paid monthly (5.07% per annum) over the 5 year term irrespective of the performance of the FTSE 100 Index.  The first income payment made to the Plan administrator will be 28 November 2022 and monthly thereafter.

Fixed Income Payment Dates: Monthly commencing 28 November 2022 and ending 28 October 2027. The full list of dates can be found on page 6 of the brochure.

Capital Protection Barrier: 65% of the Opening Level (observed on the Final Observation Date of the Plan only). If, on the Final Observation Date, the Closing Level of the Underlying Asset is less than 65% of its Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the Underlying Asset is below its Opening Level.

Counterparty Risk: The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset.

Taxation: It is Causeway Securities’ understanding of current legislation and known HMRC practice that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Income Tax. Investors should obtain their own tax advice.
Click here for more details of the Causeway Securities FTSE 100 Fixed Monthly Income Plan – October 2022
Causeway Securities FTSE 100 Kick-Out Plan – October 2022Potential Investment Return:

9.3% return on Investment for each year the Plan runs (paid gross), only payable if the Plan Kicks-Out.Kick Out Barrier: The Plan will Kick-Out if the respective Closing Level of the Underlying Asset, on any Observation Date, is at or above 100% of its respective Opening Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 9.3% for each year that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be 14th October 2025, three years after the Start Date.

Capital Protection Barrier: 65% of the Opening Level (observed on the Final Observation Date of the Plan only). If on the Final Observation Date the Closing Level of the Underlying Asset is less than 65% of its Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the Underlying Asset is below its Opening Level.

Counterparty Risk: The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset.

Taxation: It is Causeway Securities’ understanding of current legislation and known HMRC practice that any investment return from a direct investment by individuals or Trusts into this Plan is expected to be subject to Income Tax. Investors should obtain their own tax advice.
Click here for more details on the Causeway Securities FTSE 100 Kick-Out Plan – October 2022
Causeway Securities FTSE 100 Defensive Step Down Kick-Out Plan – October 2022The Causeway Securities FTSE 100 Defensive Step Down Kick-Out Plan – October 2022 is a maximum 8 year investment offering a Potential Investment Return of 7% for each year the Plan runs (paid gross), only payable if the Plan Kicks-Out.

Kick Out Barrier: The Plan will Kick-Out if the respective Closing Level of the Underlying Asset, on any Observation Date from end of Year 3, is at or above the Kick Out Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 7% for each year that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be 14th October 2025, three years after the Start Date.

Capital Protection Barrier: 65% of the Opening Level (observed on the Final Observation Date of the Plan only). If on the Final Observation Date the Closing Level of the Underlying Asset is less than 65% of its Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the Underlying Asset is below its Opening Level.

Counterparty Risk: The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset.
Click here for more details on the Causeway Securities FTSE 100 Defensive Step Down Kick-Out Plan – October 2022
The Causeway Securities FTSE 100 Defensive Kick-Out Plan October 2022 is a maximum 6 year investment offering a Potential Investment Return of 7.7% return on Investment for each year the Plan runs (paid gross), only payable if the Plan Kicks-Out.Kick Out Barrier: The Plan will Kick-Out if the respective Closing Level of the Underlying Asset, on any Observation Date, is at or above 90% of its respective Opening Level. In this event an investor will receive their Initial Capital back, plus a Potential Investment Return of 7.7% for each year that the Plan has been in existence. The first Observation Date on which an early maturity could be triggered will be 14th October 2025, three years after the Start Date.

Capital Protection Barrier: 65% of the Opening Level (observed on the Final Observation Date of the Plan only). If on the Final Observation Date the Closing Level of the Underlying Asset is less than 65% of its Opening Level (representing a decline of more than 35% from the Opening Level), your Initial Capital will be lost at a rate of 1% for every 1% that the Final Level of the Underlying Asset is below its Opening Level.

Counterparty Risk: The Counterparty of the Securities is Morgan Stanley & Co International plc. If Morgan Stanley were to fail or become insolvent, you could lose some or all of your investment and any return that may be due, irrespective of the performance of the Underlying Asset.
Click here for more details on the Causeway Securities FTSE 100 Defensive Kick-Out Plan – October 2022

About Morgan Stanley: Morgan Stanley & Co International plc is the Issuer of the Securities. They have not prepared this document and therefore accept no responsibility for its contents, nor any liability for any losses in connection with the information contained herein. Causeway Securities have prepared this document and accepts responsibility for it contents.
Don’t Forget the RisksAs 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 the Causeway Securities 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 to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.