Mariana 8:8 Plan November 2021
Potential for a 6.5% gain for each year held (3.25% 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
FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index
Morgan Stanley & Co. International Plc
8 years two weeks max.
This maximum eight-year two-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 3.25% 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%. For more information on the FTSE CSDI, please click here.
Initial Index Level: The closing level of the Index on 26 November 2021.
Final Index Level: The closing level of the Index on 26 November 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
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
|Mariana 8:8 Plan November 2021|
|EVENT / OUTCOME (IF / THEN) SUMMARY TABLE|
|Morgan Stanley & Co. International plc default||Return of any capital subject to insolvency proceedings - potential total loss|
|IF NOT …||THEN:|
|If on any semi-annual observation date from year 2 onwards the FTSE CSDI closes at or above a reducing reference level (see description)||Return of invested capital plus a 3.25% gain for each six-month period the plan has been in force (6.5% annually)|
|IF NOT …||THEN:|
|If at the end of the term the Index is more than 8%, but no more than 35% lower||Return of invested capital only|
|IF NOT …||THEN:|
|As the index is more than 35% below the Initial Index Level||Invested capital is reduced in line with the fall in the index at maturity on a 1% for 1% basis|
Lowes Financial Management, the Chartered Financial Planning and advisory firm behind StructuredProductReview.com and Lowes Structured Investment Centre, shares ‘Opinions’ on Preferred Plans with registered Professional Advisers accessing StructuredProductReview.com. Opinions are usually reached following an assessment of the Plan in question and other Plans available at the same time. Opinions and the award of Preferred Plan status are reached on balance. Plans may lose their 'Preferred' status if an alternative Plan becomes available which in the opinion of Lowes Financial Management has more attractive terms, on balance.
The launch of Lowes Structured Investment Centre, a trading style of Lowes Financial Management, introduces Plans to the market that are developed with the input of Lowes Financial Management / Lowes Structured Investment Centre, in co-operation with the sector’s issuers and providers. These product co-operations are designed to help extend product ranges across the sector, building on areas of strength and interest with each Sector Partner. Sector Partners must be members (or pending members) of the UK Structured Product Association (UKSPA). The product co-operations are designed and developed with the active input of Lowes Financial Management / Lowes Structured Investment Centre and on principle they must be good enough to meet Lowes Financial Management’s assessment as independent Professional Advisers for use with our own clients.
This investment was conceived and developed with input from Lowes Financial Management. We feel that the semi-annual 3.25% potential coupon, payable from the second anniversary and then every six month onwards, even in moderately bearish market conditions where the FTSE CSDI falls by up to 8%, coupled with the extended maximum term of eight years providing increased opportunities for the investment to successfully generate positive returns, makes this a compelling investment proposition. On balance, we feel that this is a potentially appropriate investment for use in a diversified portfolio, for those who understand and accept the risks.
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Disclosure of Interests
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