Lowes Structured Investment Centre

Lowes Structured Investment Centre

Mariana 10:10 Income and Growth Plan May 2021

Potential for gross quarterly income payments of 0.75%, provided the FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index closes no more than 30% below its Initial Index Level on any quarterly observation date. The plan will terminate early from year three onwards if the Index closes at least 5% above its Initial Index Level on any quarterly observation date, returning original capital in full in addition to a gain of 1% for each quarter the plan has been in force. This investment was designed in conjunction with Lowes Financial Management – please see ‘Opinion’ for more information, including disclosure of our interests.

Growth and Income

Capital at Risk

1260

FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index

4

Morgan Stanley & Co. International plc

10 years 1 weeks

27/04/2021

14/05/2021

21/05/2021

This maximum ten-year one-week structured investment aims to generate gross quarterly income payments of 0.75%, which are dependent upon the performance of the FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index throughout the investment term. Income will be paid provided that on each of the quarterly observation dates, the Index closes at a level no more than 30% below its Initial Index Level. If on any quarterly observation date the Index does close more than 30% below its initial level, no income payment will be made in respect of that period. The plan will terminate early from year three onwards if on any quarterly observation date the Index closes at least 5% above its Initial Index Level, in which case investors' original capital will be returned in full in addition to a 1% gain for each quarter the plan has been in force, plus the income payment due for that period. If the plan fails to mature early and the Final Index Level is more than 30% below its Initial Index Level, then investors will suffer a reduction to their invested capital of 1% for every 1% the Final Index Level is below the Initial Index Level.
The FTSE CSDI was created specifically for structured products. It aims to closely replicate the performance of the same 100 companies, but after including the dividends – the equivalent to the FTSE 100 ‘total return’ index, from which, a constant annual dividend of 3.5% is deducted. The FTSE CSDI index may therefore be expected to perform in a similar way to the FTSE 100 Index although, it would be expected to slightly underperform the latter if the total dividend yield transpires to be less than 3.5%. The correlation of FTSE CSDI to the FTSE 100 over a 10-year simulated back-test is 98.26% (Mariana). For more information on the FTSE CSDI, please click here.

Initial Index Level: The closing level of the Index on 21 May 2021.

Final Index Level: The closing level of the Index on 21 May 2031.

Tax Treatment if held outside Tax Shelter: The product literature states that under current legislation any gain produced by this investment at redemption will be subject to Capital Gains Tax rules applicable at that time, and any income payment will be paid gross and subject to UK Savings Income Tax at the investor’s highest marginal rate.

Please note, tax rules and legislation are subject to change at any time.

Administrator:  James Brearley & Sons

Custodian:  James Brearley & Sons

Capital at Risk Barrier Observation: (Subject to Counterparty Solvency)

Capital at Risk Barrier Observation Type: End of Term only

Barrier Level: 30.00% Below Initial Index Level

Downside: 1:1

Explanation: If the investment fails to produce a gain, it still aims to return investors' capital in full at maturity, unless the Final Index Level is more than 30% below the Initial Index Level. If such a stock market fall occurs, investors' capital will be reduced in line with the percentage fall in the Index.

Charges: Unless stated otherwise charges do not affect the amount being invested as they have been taken into account in the terms of the investment. So, for every £100 invested, the return, provided the investment is held until maturity, should be £100, plus or minus the gain or loss in accordance with the defined terms. Separate fees may be payable to your adviser, platform or stockbroker for arranging this investment.

The initial charge incorporated in the terms of the investment: Initial charges are not expected to exceed 2%.

If surrendered early, the value will be dependent on a number of factors and may be less than the original amount invested. 

Early Surrender: £200

Early ISA Transfer: £200

Other Charges: