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All investment involves risk and you could lose some or all of the money you invest.

The information given in this product review has been taken from the product terms and conditions, brochure, and other literature available from the product provider. No guarantee can be made to the accuracy of the information. You should therefore satisfy yourself as to the full terms and risks of any investment by reference to the relevant materials provided by the product provider. Please request these documents using the buttons on the left of the page.


Please Note: This product closed for investment on 17/12/2019

Mariana Capital 10:10 Plan December 2019 (Option 3)

Overview:

Potential for a 12.75% gain for each year held, payable on any anniversary from year two onwards, provided the FTSE 100 Index closes at least 5% higher than the Initial Index Level with a maximum duration of ten years. 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:

No

Capital at Risk Barrier Type:

End of Term only

Term:

10 years 2 weeks max.

Barrier Level:

70% of Initial Index Level.

Downside:

1:1

Capital At Risk Barrier: (Subject To Counterparty Solvency)

70% 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
17/12/2019 27/11/2019 20/12/2019 31/12/2029
Closing Date
17/12/2019
ISA Transfers
27/11/2019
Strike Date
20/12/2019
Maturity Date
31/12/2029

Possible Early Maturity Dates:

20/12/2021 20/12/2022 20/12/2023 20/12/2024 22/12/2025 21/12/2026 20/12/2027 20/12/2028

Counterparty:

Goldman Sachs International

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.

A+
A+

S&P Rating*

A
A

Fitch Rating*

A1
A1

Moody's Rating*

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

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, provided that the FTSE 100 Index closes at least 5% higher than the Initial Index Level, returning the capital investment in full, plus a 12.75% gain for each year the plan has been in force.

If the plan fails to mature early and the Final Index Level is below 105% of 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.

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 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.

Please note that, where no financial advice has been sought or given, the minimum investment is £5000. Please note the closing date for applications by cheque is 11 December 2019 and by bank transfer is 17 December 2019. Lowes will not charge an ongoing fee or receive any annual commission in respect of this investment.

Contract Details

Initial Index Level:

The closing level of the Index on 20 December 2019.

Final Index Level:

The closing level of the Index on 20 December 2029.

Cash ISA Equity ISA Direct ISA Transfer SIPP **
Availability
Minimum Contribution*
N/A £5,000 £5,000 £5,000 £5,000

*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 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: 70% 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 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: Initial charges are not expected to exceed 2.3%.

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
Goldman Sachs International 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 100 Index closes at least 5% above the Initial Index Level = Return of invested capital plus a 12.75% gain for each year the plan has been in force
If not
If at the end of the term, the FTSE 100 Index is no more than 30% below its Initial Index Level = Return of invested capital only
If not
As the FTSE 100 Index is more than 30% lower = Invested capital is reduced in line with the fall in the Index 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 12.75% potential coupon, payable from year two onwards, in moderately bullish market conditions where the FTSE 100 index rises by at least 5%, coupled with the extended maximum term of ten years providing increased anniversary opportunities for the investment to successfully generate positive returns, makes this a compelling investment proposition. While it should be acknowledged that the barrier at 70% of Initial Index Level is lower than typical in the market, this needs to be considered in the context that this is only observed at the end of the ten years and then only in the event that an earlier maturity was not triggered. On balance, we feel that this is potentially appropriate 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 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.

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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.

Fees

Where no advice has been sought or given, our fee for acting as intermediary for this investment is 1.65% of the amount invested, capped at £2,000. For example, on an investment of £25,000 our fee would be £412.50 and for an investment of £125,000 it would be £2,000.

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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 21 and 22 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.

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