Lowes Financial Management - 09/09/2020
We are delighted to announce another exciting structured investment opportunity, not least given the challenge that 2020 has proven for investors. This opportunity, exclusive to clients of Lowes Financial Management utilises HSBC Bank Plc as counterparty.
The plan is a FTSE 100 Index linked capital-at-risk contract with a maximum investment term of seven and a half years. However, the plan has an autocall feature, meaning it has the possibility to mature early after eighteen months, and annually thereafter, provided that the FTSE 100 Index closes at least equal to its Initial Index Level on any observation date.
Whilst you should only rely upon the product literature for full details, the investment is summarised as follows:
- FTSE 100 linked auto-call / kick-out
- Closes 14th October (23rd September for ISA Transfers) but may be oversubscribed sooner
- Investment start: 16th October 2020
- First possible maturity after 18 months and annually thereafter
- Early maturity triggered by FTSE 100 being up by any percentage
- 12% gain payable if maturity triggered at 18 months
- 7% more (not compounded) for each further year. I.e. maturity at 3.5 years pays 26%
- 7.5-year maximum term
- Capital at risk barrier: 65% of the 16th October 2020 FTSE 100 level
- Capital at risk barrier observation date: 17th April 2028 (only if not matured sooner)
- Minimum Investment £5,000. Investments over £100k by prior arrangement only
- Counterparty: HSBC Bank Plc
- Investment method: ISA / ISA transfer, Individual, Joint, SIPP, Trust, Corporate, Partnership
- Individual / Joint gains taxable only if annual gains from all sources exceed £12,300
- Cancelation rights: 14 days
- Can be surrendered from month one but penalties and loss will result
- Can be gifted, bequeathed, and transferred under probate
The graph below illustrates every possible early maturity point, relevant to the FTSE 100 Index, from which its performance is derived. We have also outlined the percentage gain achievable should the kick-out criteria be met on any of observation dates. If an early maturity is not triggered by the end of the term and the FTSE 100 is lower than the initial index level the investment will not produce a gain. In these circumstances, if the final index level is more than 35% below the initial index level an equivalent loss to invested capital will arise.
In summary, the investment is designed to mature after 18 months, returning original capital plus a gain of 12% (£1,200 per £10,000 invested) - if the FTSE 100 is above the 16 October 2020 closing level. If not, it will mature after two and half years, or annually thereafter when the FTSE is above that level, adding a further 7% (£700 per £10,000 invested) potential gain for each year. The maximum term is seven and-a-half years and if it has not matured by then and the FTSE is more than 35% lower, invested capital will be reduced by that percentage i.e. if the FTSE falls, does not recover and is half the October 2020 level on 17 April 2028 only £5,000 per £10,000 invested will be returned.
If you would like to consider this investment further and even apply for a no obligation reservation of a proposed investment amount, please either visit Lowes.co.uk/exclusive or email Promotions@lowes.co.uk. On receipt of your request, we will provide you with the product literature and refer you to a Lowes Consultant for advice.
We have a limited allocation and so please do not delay if you are interested.
Structured investments put capital at risk. Past performance is not a guide to the future.
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