Lowes Structured Investment Centre

Lowes Structured Investment Centre

Mariana 8:8 Plan June 2021

Potential for a 6.7% gain for each year held (3.35% semi-annually), payable on any semi-annual observation from year two onwards, provided the FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index (FTSE CSDI) is at or above a reducing reference level (see description). This investment was designed in conjunction with Lowes Financial Management – please see ‘Opinion’ for more information, including disclosure of our interests.

Auto-Call / Kick-Out

Capital at Risk

1260

FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index

4

Goldman Sachs International

8 years one week max.

02/06/2021

18/06/2021

25/06/2021

This maximum eight-year one-week product features the potential to mature on any of the plan's semi-annual observation dates from year two onwards, returning the investment capital in full, plus a 3.35% gain for every six months the plan has been in force. The plan will mature early in the event that the FTSE CSDI, recorded on the relevant observation date, is at or above a reducing reference level. The reference level in years two and three is 100% of the Initial Index Level, and is reduced to 92% of the Initial Index Level in years four, five, six, seven and eight. If the plan does not mature early, and the Final Index Level is below 92% of the Initial Index Level, no growth will be achieved; however investors' capital should still be returned in full, unless the Final Index Level is more than 35% below its Initial Index Level. If such a fall does occur then investors will suffer a reduction to their invested capital equal to the percentage that the Final Index Level is below its Initial Index Level. For example, if the Final Index Level is 40% down, investors will suffer a reduction to their capital of 40%. 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 98.52%. For more information on the FTSE CSDI, please click here.

Initial Index Level: The closing level of the Index on 25 June 2021.

Final Index Level: The closing level of the Index on 25 June 2029.

Tax Treatment if held outside Tax Shelter: The product literature states that under current legislation any gain achieved by this investment at redemption will be subject to Capital Gains Tax rules applicable at that time.

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

Administrator:  James Brearley & Sons Limited

Custodian:  James Brearley & Sons Limited

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

Capital at Risk Barrier Observation Type: End of Term only

Barrier Level: 35.00% 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, unless the Final Index Level is more than 35% below its initial level. If such a stock market fall occurs, investors will suffer a reduction to their invested capital of 1% for every 1% the Final Index Level is below its Initial Index Level.

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: