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Mariana launch tranche of plans for February 2023

  • Wednesday, January 11, 2023
Mariana launch tranche

MARIANA STRUCTURED PRODUCTS UPDATE
Mariana launch tranche
 

Mariana have launched a new tranche of plans for February 2023:

  • Mariana 10:10 Plan (FTSE CSDI Version) – February 2023 Plans – Options 1, 2 & 3
  • FTSE 100 Defensive Kick Out Plan – February 2023

A summary of each plan is provided below.  All plans are available on a non-Advised basis.

The Mariana 10:10 plan (FTSE CSDI Version) has been available for over 7 years and established as a ‘go to’ investment within many investors.

The overall Product design coupled with both the impressive Back-testing & the current market environment makes it a compelling & powerful diversification tool for a number of Investors’ investment strategies.

This investment tranche is underwritten by Morgan Stanley (S&P A+ Stable) as the chosen Counterparty.

Headline details of the product options are as follows, please refer to the Brochure and KID document for full information on the Plans.:

Mariana launch tranche

The 10:10 Plan continues to use the FTSE CSDI Index, which was introduced some eighteen months ago now, in order to get better value for Investors.  Just to remind you this Index was designed specifically for structured products – its full title is the FTSE Custom 3.5% Synthetic Fixed Dividend Index (FTSE CSDI), & it is now very much a staple within the sector.

The FTSE CSDI is not the same as the FTSE 100. While its performance is expected to be similar, it will not be identical. It is possible that the FTSE 100 could rise while the FTSE CSDI falls. The FTSE CSDI includes dividend income but removes a fixed dividend of 3.5% a year. If actual dividends paid on the shares in the FTSE 100 are less than 3.5% a year for a given period, the performance of the FTSE CSDI will be worse than the FTSE 100 over that period. At the time of writing (19 December 2022), the implied dividend yield of the FTSE 100 for 2022 is 3.46%; slightly below the 3.5% fixed dividend of CSDI. If this remains the case, all else being equal, the CSDI will underperform the FTSE 100 by a similar differential amount over the short term. The FTSE CSDI is linked to the FTSE 100 Synthetic index which is based on FTSE 100 futures, not the FTSE 100 itself. FTSE 100 futures generally perform in a similar way to the FTSE 100, but there is a possibility that they may behave differently.
Source: Bloomberg, 19 December 2022.

For further details about the FTSE CSDI please refer to pages 12 and 13 of the Brochure.

Mariana FTSE 100 Defensive Kick Out Plan February 2023

This plan has a term of up to 6 years and one week.  It offers a Potential Return of 9.26% return on investment for each year the Plan runs, paid gross. The Potential Return will only be paid if the Plan kicks out.

Once again, thank you for your continued interest in our investment services and look forward to transacting more business with you shortly.
Mariana launch tranche
Mariana 10:10 Plan FTSE CSDI Version – February 2023
This is a ten year, two week Plan based on the performance of the FTSE™ Custom 100 Synthetic 3.5% Dividend Index, the Underlying Asset. The Plan has three options and is constructed to offer a Potential Return of 9.50% in Option 1, 10.80% in Option 2 and 12.10% in Option 3 for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the 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 Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 24 February 2025 to 24 February 2033). If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (24 February 2033) the Closing Price of the Underlying Asset is not more than 30% below the Start Level.

If on the Maturity Date the Closing Price of the Underlying Asset is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level
Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – February 2023 OPTION 1
Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – February 2023 OPTION 2
Click here for more details of the Mariana 10:10 Plan (FTSE CSDI Version) – February 2023 OPTION 3
Mariana launch tranche
FTSE 100 Defensive Kick Out Plan – February 2023This is a six year, one week Plan based on the performance of the FTSE™ 100 Index, the Underlying Asset. The Plan is constructed to offer a Potential Return of 9.26% for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s third year and annually thereafter. The Potential Return is only payable if the 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 Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.

The Kick Out observations begin on the third anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 24 February 2025 to 26 February 2029).

If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (26 February 2029) the Closing Price of the Underlying is not more than 40% below the Start Level. If on the Maturity Date the Closing Price of the Underlying Asset is less than 60% of the Start Level (representing a decline of more than 40% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.
Click here for more information on the Mariana FTSE 100 Defensive Kick Out Plan – February 2023

About Morgan Stanley & Co. International plc: Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, advises, and originates, trades, manages and distributes capital for, governments, institutions and individuals. At the end of Q2 2022, it had a standardized Common Equity Tier 1 capital ratio of 15.2%.

More information on Morgan Stanley B.V. can be found on their website www.morganstanley.comor by requesting a copy of their prospectus from Mariana. The prospectus contains information and contractual terms for the securities issued by Morgan Stanley B.V.

Morgan Stanley acts as Guarantor of the securities issued by Morgan Stanley B.V, which means that Morgan Stanley will make the payments under the securities if Morgan Stanley B.V. is unable to fulfil its payment obligations.

You may lose part and up to all your investment if Morgan Stanley B.V. goes into liquidation and defaults on paying your Plan return and the repayment of your Initial Capital. The risk that Morgan Stanley B.V.plc goes into liquidation is called Counterparty Risk.

Securities issued by Morgan Stanley B.V. and Morgan Stanley are not covered by the Financial Services Compensation Scheme (FSCS). Therefore if the Issuer and/or the Guarantor become insolvent you would not be covered by the FSCS.

The Plan is not endorsed, sponsored or otherwise promoted by Morgan Stanley or any of its affiliates. None of Morgan Stanley or its affiliates are responsible for the contents of this brochure and nothing in this document should be considered a representation or warranty by Morgan Stanley to any person regarding whether investing in the product is suitable or advisable for such a person. Neither Morgan Stanley, nor any of its affiliates, has provided advice, nor made any recommendation about investments or tax in relation to this product.
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 (when combined with our smiley and helpful service) the Mariana 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 if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.