10:10 Plan April 2025 (Option 1)
Mariana
Product Type: Capital at Risk
Investment Type: Auto-Call / Kick-Out
Product Index Link: FTSE CSDI (Custom 100 Synthetic 3.5% Fixed Dividend Index)
Potential FSCS Protection: No
Capital at Risk Barrier Type: End of Term only
Term: 10 years 2 weeks max.
Barrier Level: 30%
Downside: 1:1
Strike Date: 11/04/2025
Closing Date: 04/04/2025
ISA Transfers: 19/03/2025
Maturity Date: 25/04/2035
Counterparty name withheld
Counterparty: Morgan Stanley
Risks
All investment involves risk and you could lose some or all of the money you invest.
It is imperative that you read the plan brochure and terms and conditions and understand all of the risks involved, which are outlined on page 17 and 18 of the brochure, prior to proceeding.
If you do not fully understand the risks, the commitment or you are unsure as to the suitability of the investment for you, you should not proceed but instead contact us for advice.
Description
This maximum ten-year and two-week plan features the potential to mature on any of the plan's anniversaries from year two onwards, returning the capital investment in full, plus a 7.65% gain for each year the plan has been in force. The plan will mature early in the event that the FTSE CSDI closes at, or above a reducing reference level which reduces each year from year four onwards. The Reference Level in year two is 102.5% of the Initial Index Level and this level is reduced by 2.5% on each subsequent anniversary and so will be 100%, 97.5%, 95%, 92.5%, 90%, 87.5%, 85% and 82.5% of the initial level for years three, four, five, six, seven, eight, nine and ten respectively.
If the plan fails to mature early and the Final Index Level is more than 17.5% below the Initial Index Level, no gain will be achieved; however, investors' capital should still be returned in full, unless the Final Index Level is more than 30% below the Initial Index Level. If such a fall does occur, the invested capital will be reduced by 1% for every 1% the Final Index Level is below the Initial Index Level. For example, if the plan fails to mature early and the Final Index Level is 35% below the Initial Index Level, investors' will suffer a 35% reduction to their invested capital.
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 is very highly correlated to the FTSE 100 Index, and 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%.
<strong>Disclosure of Interests:</strong>
<i>Lowes has provided input into the concept, development, promotion and distribution of this Plan. The provider’s charges/fees are built into the terms of the investment - Lowes has a commercial interest in the Plan as a result of its involvement in its development and promotion. All Plan returns are stated after allowing for the provider’s charges/fees. Where Lowes is involved in advice on or the intermediation of this investment to retail clients, it will not be paid any fee from Mariana for its input. The aim of developing Plans in co-operation with providers, with Lowes input, is that they should be amongst the best available in the market. Lowes has robust systems and controls in place to ensure that it manages any actual or potential conflicts of interests in its activities.</i>
Initial Index Level:
The closing level of the Index on 11 April 2025.
Final Index Level:
The closing level of the Index on 11 April 2035.
|
Cash ISA |
Equity ISA |
Direct |
ISA Transfer |
SIPP ** |
| Availability |
No
|
Yes
|
Yes
|
Yes
|
Yes
|
| Minimum Contribution* |
N/A |
£10,000 |
£10,000 |
£10,000 |
£10,000 |
*Note that minimum contributions exclude any applicable adviser charges
**The investment may also be available through third party SIPP Providers
Tax Treatment if held outside Tax Shelter:
The product literature states that under current legislation any gain produced by this investment at redemption, where held outside of a tax wrapper, 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.
Capital At Risk Barrier (Subject To Counterparty Solvency)
Barrier Level: 30%
Downside: 1:1
Capital at Risk Barrier Type: End of Term only
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: Approximately 4.09%.
If surrendered early, the value will be dependent on a number of factors and may be less than the original amount invested.
In the event of early surrender the provider may levy an administration fee which will be deducted from the surrender proceeds as follows:
Early Surrender: £200
Early ISA Transfer: £200
Summary Table
| Event |
|
Outcome |
| Morgan Stanley default |
= |
Return of any capital subject to insolvency proceedings - potential total loss |
| If not |
| If on any annual observation date from year two onwards the FTSE CSDI closes at or above a reducing reference level |
= |
Return of invested capital plus a 7.65% gain for each year the plan has been in force |
| If not |
| If at the end of the term the FTSE CSDI is between 17.5% and 30% lower |
= |
Return of invested capital only |
| If not |
| As the FTSE CSDI is more than 30% lower |
= |
Invested capital is reduced in line with the fall in the Index on a 1% for 1% basis |
Fees
Given that there is no commission built into the terms of this plan there will be no cash-back available. Where no advice has been sought or given we charge a fee for acting as intermediary for all investments, which is 1.65% of the amount invested. Please note that minimum investment limits exclude any applicable fees.