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FTSE 5 Quarterly Kick-Out Plan 3
5.50% per quarter with 19 early maturity opportunities
Key Features
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Investment returns linked to the performance of five leading companies
within their respective sectors (all in the FTSE 100 Index).
These are HSBC Holdings (Financial), Royal Dutch Shell - Class A Shares
(Energy), Tesco PLC (Consumer), BHP Billiton (Mining) and
GlaxoSmithKline (Pharmaceuticals).
Early maturity will be triggered if, on any Quarterly Measurement Date, the
closing share prices of all five shares are at least 95% of their respective
Opening Levels, in which case the Plan will mature early and will make a
growth payment of 5.50% of the initial investment for each quarter that the
Plan has been in force.
100% capital return unless on 14th October 2016 the Final Level of the
lowest performing share is more than 50% below its Opening Level.
In the event of a capital loss occurring, capital will be reduced by the same percentage the Final
Level of the lowest performing share is below its Opening Level.
Available to 12th October 2011.
Target Market
This investment could be suitable as part of an investment portfolio for investors who
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understand and are used to equity based investments, and
are able to invest for a period of up to five 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
30th September 2011 – ISA transfer applications
7th October 2011 – applications with cheques
12th October 2011 – applications with bank transfers
Strike Date
14th October 2011
Opening Levels
Close of Business on 14th October 2011
Final Levels
Close of Business on 14th October 2016
Quarterly Measurement Dates
16th January 2012, 16th April 2012, 16th July 2012, 15th October 2012, 14th January 2013, 15th April 2013,
15th July 2013, 14th October 2013, 14th January 2014, 14th April 2014, 14th July 2014, 14th October 2014,
14th January 2015, 14th April 2015, 14th July 2015, 14th October 2015, 14th January 2016, 14th April 2016,
14th July 2016.
Maturity date
28th October 2016
http://www.meteoram.com
You should refer to the brochure which contains full details of the FTSE 5 Quarterly Kick-Out Plan
3.
Telephone enquiries to: 0207 904 1010 or email to [email protected]
Key facts
Investment Term
Availability
Shares
Investment Return
Capital Return
Counterparty Risk
Tax
Charges
Interest
Commission
Securities
Five years and two weeks, with the potential for early maturity.
Early maturity will be triggered if on any Quarterly Measurement
Date the closing share prices of all five shares are at least 95% of
their respective Opening Levels, in which case the Plan will mature
early and will make a growth payment of 5.50% (gross) for each
quarter that the Plan has been in force plus a full return of capital.
As direct investments, stocks and shares ISAs, ISA transfers, and
for pension funds, trustees and companies.
HSBC Holdings, Royal Dutch Shell – Class A Shares, Tesco PLC,
BHP Billiton and GlaxoSmithKline.
5.50% per quarter for each quarter the Plan is in force. For
example, if the Plan were to run for one quarter investors would
receive 5.50% (end of quarter 1); if it were to run for one year
investors would receive 22% (end of quarter 4); if it were to run for
two years and six months the Plan would pay 55% (end of quarter
10); if the plan were to run for three years and nine months
investors would receive 82.5% (end of quarter 15). If the plan runs a
full five year term and the Final Levels of the shares are at or above
95% of their respective Opening Levels, investors in the Plan will
receive 110% plus a full return of capital. If the Final Level of one or
more of the shares is below 95% of its respective Opening Level,
no investment return will be payable.
Capital will be returned in full unless the Final Level of one of the
Shares is more than 50% below its Opening Level. If the Final Level
of one of the Shares is more than 50% below its Opening Level,
capital will be reduced by the same percentage the Final Level of
the lowest performing share is below its Opening Level.
Please see the brochure for a full explanation of the calculation.
The securities will be issued by The Royal Bank of Scotland plc, a
major financial institution with a credit rating as at 18th August 2011
of ‘A+’ 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.
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.
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
five year term will be up to a maximum of 7%.
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.
3%
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 FTSE 5 Quarterly Kick-Out Plan 3 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.