Investec / Lowes 8:8 Plan 11

Overview:

Potential for a 7% gain for each year (3.5% semi-annually) held, payable on any semi-annual observation from year two onwards, provided the FTSE 100 Index is at or above 92% of the Initial Index Level. Note: This investment was designed in conjunction with Lowes Financial Management – please see ‘Opinion’ for more information, including disclosure of our interests.

Product Type:

Capital at Risk

Investment Type:

Auto-Call / Kick-Out

Product Index Link:

FTSE 100 Index

Potential FSCS Protection:

Capital at Risk Barrier Type:

End of Term only

Maximum Term:

8 years max.

Barrier Level:

60% of Initial Index Level.

Downside:

1:1

Capital At Risk Barrier: (Subject To Counterparty Solvency)

60% of Initial Index Level, observed at the end of the term.

Initial (Strike) Index Level >>

Important Dates:

Closing Date	ISA Transfers	Strike Date	Maturity Date
19/07/2019	28/06/2019	29/07/2019	29/07/2027

Closing Date
19/07/2019

ISA Transfers
28/06/2019

Strike Date
29/07/2019

Maturity Date
29/07/2027

Possible Early Maturity Dates:

29/07/2021

31/01/2022

29/07/2022

30/01/2023

31/07/2023

29/01/2024

29/07/2024

29/01/2025

29/07/2025

29/01/2026

29/07/2026

29/01/2027

Counterparty:

Investec Bank Plc

Please Note: The investment returns and the return of capital are dependent upon the counterparty meeting their obligations on time and in full. If the counterparty fails to meet their obligations you could lose some or all of your capital.

The credit ratings provided below can be a useful way to compare the credit risk associated with different Counterparties or Deposit Takers. Credit ratings are assigned by independent companies known as ratings agencies.

S&P Rating*

Not rated by Standard & Poor's

BBB+

Fitch Rating: BBB+

Fitch Rating*

D RD C CC CCC - B + - BB + - BBB + - A + - AA + AAA

Moodys Rating: A1

Moody's Rating*

C Ca Caa B Ba Baa A Aa Aaa

3 2 1 3 2 1 3 2 1 3 2 1 3 2 1 3 2 1

Description

This maximum eight-year 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 3.5% gain for every six months the plan has been in force. The plan will mature early in the event that the FTSE 100 Index recorded on the relevant observation date is at or above 92% of its initial level.

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 40% 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 45% down, investors will suffer a reduction to their capital of 45%.

Disclosure of Interests: 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 Investec 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.

Our fee for acting as intermediary for this investment, processed by CompareStructuredProducts.com and where no advice has been sought or given is 1.65% of the amount invested. For investments over £100,000 please contact us for preferential fees.

Contract Details

Initial Index Level:

The closing level of the Index on 29 July 2019.

Final Index Level:

The closing level of the Index on 29 July 2027. However, this plan matured early on 29 July 2021.

	Cash ISA	Equity ISA	Direct	ISA Transfer	SIPP **
Availability
Minimum Contribution*	N/A	£3,000	£3,000	£3,000	£3,000

*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 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.

Capital At Risk Barrier (Subject To Counterparty Solvency)

Barrier Level: 60% of Initial Index Level.

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, unless the Final Index Level is more than 40% 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: Approximately 3% of the original investment.

If surrendered early, the value will be dependent on a number of factors and may be less than the original amount invested.

Summary Table

Event		Outcome
Investec Bank Plc default	=	Return of any capital subject to insolvency proceedings - potential total loss
If not
If on any semi-annual observation date from year 2 onwards the FTSE 100 Index closes at or above 92% of its Initial Index Level	=	Return of invested capital plus a 3.5% gain for each six-month period the plan has been in force (7% annually)
If not
If at the end of the term the Index is more than 8%, but no more than 40% lower	=	Return of invested capital only
If not
As the index is more than 40% 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

Opinion

Our opinion has been reached following an assessment of this and other current plans available at the time of publishing and on balance, this is one of our 'Preferred' plans. Please note, however, plans may lose their 'Preferred' status if an alternative plan becomes available which, in our opinion, has more attractive terms.

It must be appreciated that it is very possible that none of the investments featured on this site are suitable for you and so the 'Preferred' status or lack of it should not be construed as advice or a recommendation to invest. You should always ensure that you read the product literature carefully to satisfy yourself as to the terms and the risks of any investment before proceeding.

This investment was conceived and developed with input from Lowes Financial Management. We feel that the 7% potential coupon, payable from the second anniversary and then every six month onwards, even in moderately bearish market conditions where the FTSE 100 index 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.

Disclosure of Interests:
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 Investec 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 – and, as such, be granted ‘Preferred’ status, on their merits. Lowes has robust systems and controls in place to ensure that it manages any actual or potential conflicts of interests in its activities.

Read our Review

If you have any questions about any investment featured on the site, please call 0191 281 8811 or click here to submit a query.

We would welcome the opportunity to talk to you about your investment needs. This web site is operated by Lowes Financial Management Ltd who have been Independent Financial Advisers since 1971. If you have any doubts about the suitability of an investment for you, and would like to speak to an adviser from Lowes Financial Management, please call 0191 281 8811 or click here to request a Call Back.

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 12 and 13 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 via E-mail or Callback Request for advice.

Information

Questions?