Top Ten Kick-Out Plan 9
18% per annum with 5 early maturity opportunities
Key Features
§ Investment returns linked to the performance of the top ten companies by index weighting in the FTSE 100™ (the Index) as at 15th August 2011.
§ The top ten FTSE 100 companies as at 15th August 2011 were AstraZeneca, BG Group, BHP Billiton, BP plc, British American Tobacco, GlaxoSmithKline, HSBC Holdings, Rio Tinto, Royal Dutch Shell (Class A shares) and Vodafone; accounting for slightly over 45% of the FTSE 100 by index weighting.
§ Early maturity will be triggered if on any Annual Measurement Date, the Closing Levels of at least eight of the ten Shares are equal to or greater than their Opening Levels, at which point the Plan will make a growth payment of 18% for each year the Plan has been in force.
§ 100% capital return provided the Final Levels, on 29th September 2017, of eight or more of the Shares are not more than 50% below their respective Opening Levels.
§ In the event of a capital loss occurring, capital will be reduced by the same percentage the third worst performing share is below its Opening Level.
§ Available to 28th September 2011
Target Market
This investment could be suitable as part of an investment portfolio for investors who
§ understand and are used to direct equity investments, and
§ are able to invest for a period of up to six years, and
§ are prepared to accept investment risk to their capital in return for a higher potential growth than would be available via a deposit based investment
Key Dates
Offer period
16th September 2011 – ISA transfer applications
23rd September 2011 – applications with cheques
28th September 2011 – applications with bank transfers
Strike Date
30th September 2011
Opening Levels
Close of Business on 30th September 2011
Final Levels
Close of Business on 29th September 2017
Annual measurement dates
28th September 2012, 30th September 2013, 29th September 2014, 29th September 2015 and 29th September 2016.
Maturity date
13th October 2017
http://www.meteoram.com
You should refer to the brochure which contains full details of the Top Ten Kick-Out Plan 9.
Telephone enquiries to: 0207 904 1010 or email to
Key facts
Investment Term / Six years and 14 days, with the potential for early maturity. Early maturity will be triggered if the levels of eight or more of the Shares are at or above their respective Opening Levels on any Annual Measurement Date of the Plan.Availability / As direct investments, ISAs, ISA transfers, and for pension funds, trustees and companies.
Shares / AstraZeneca, BG Group, BHP Billiton, BP plc, British American Tobacco, GlaxoSmithKline, HSBC Holdings, Rio Tinto, Royal Dutch Shell (Class A shares) and Vodafone (‘the Shares’).
Investment Return / 18% per annum (simple) for each year the Plan is in force, so the returns at each possible early maturity date would be 18% (end of year 1), 36% (end of year 2), 54% (end of year 3); 72% (end of year 4); 90% (end of year 5) or if the plan runs a full six year term and eight or more of the Final Levels are at or above their respective Opening Levels, 108%. If the plan has not kicked out early and the Final Levels of three or more Shares are below their respective Opening Levels, no investment return will be payable.
Capital Return / Capital will be returned in full unless the Final Levels of three or more of the Shares are more than 50% below their respective Opening Levels. If not, capital will be reduced by the same percentage the Final Level of the third worst performing share is below its Opening Level.
Please see the brochure for a full explanation of the calculation.
Counterparty Risk / The Securities are issued by Rabobank, a major financial institution with a credit rating as at 15th August 2011 of ‘AAA’ by Standard and Poor’s. If the financial institution were to fail to meet the repayments due to us, investors could lose some or all of their investment. Counterparty risk is common to all similar investments.
Tax / Under current tax legislation, it is our understanding that, gains on assets held in an ISA will be free from any tax, while gains on direct investments will be subject to Capital Gains Tax.
Charges / We buy the Securities at an agreed price that covers all establishment and administration costs, fees and expenses payable to ourselves and each of the financial institutions involved and any commission we pay Financial Advisers. Total charges over the full six year term will be up to a maximum of 9%.
Interest / Interest will be credited on subscriptions received and held in our client account up to the investment date, if it is £10.00 or more.
Commission / 3%
Securities / Securities will be structured to provide returns shown in the plan brochure, and purchased for each investor. These may be notes, warrants, shares or deposits depending on the nature of the investment.
Full Details of the investment are set out in the Top Ten Kick-Out Plan 9 brochure, which incorporates the Terms and Conditions. All potential investors should read the literature carefully and make sure they understand how the Plan works.
This information is for professional investors only and should not be presented to, or relied upon by, private investors.