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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 31/08/2016

Mariana Capital 10:10 Plan September 2016 (Option 2)

Overview:

Potential for a 9.4% gain on the invested capital for each year held, payable on any anniversary from year three onwards, provided the FTSE 100 Index closes at or above its 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
31/08/2016 09/08/2016 02/09/2016 02/09/2026
Closing Date
31/08/2016
ISA Transfers
09/08/2016
Strike Date
02/09/2016
Maturity Date
02/09/2026

Possible Early Maturity Dates:

02/09/2019 02/09/2020 02/09/2021 02/09/2022 04/09/2023 02/09/2024 02/09/2025

Credit Exposure:

Four Financial Institutions (Collateralised)

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*

Aa3
A2

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 three onwards, provided that the FTSE 100 Index closes at a level equal to, or higher than the Initial Index Level, returning the capital investment in full, plus a 9.4% gain on the invested capital for each year the plan has been in force.

If the plan fails to mature early and the Final Index Level is 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.

This plan is issued by SG Issuer and guaranteed by Societe Generale. In order to reduce exposure to the risk of the impact of Societe Generale being unable to meet their obligations the underlying note is collateralised with UK Government debt, Investment Grade Bonds and FTSE 100 equities. The collateral value will be monitored and adjusted to match the value of the plan, which may be higher or lower than the initial value. It must be appreciated that in the event of Societe Generale's default an enforced early maturity will occur and the collateralised surrender value could be less than the amount invested.

The plan is also exposed to the credit risk of four financial institutions. The Standard & Poor's ratings for the four institutions are: Macquarie Bank Ltd (A), Lloyds Bank Plc (A), Stantander UK Plc (A) and Standard Chartered Bank (A). Twenty-five per-cent of the investment is exposed to each institution, and should any of the four financial institutions be unable to meet their wider financial obligations, that proportion of the investment could suffer a loss.

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 24 August 2016 and by bank transfer is 31 August 2016. Lowes will not charge an ongoing fee or receive any annual commission in respect of this investment. 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 2 September 2016.

Final Index Level:

The closing level of the Index on 2 September 2026. However, this plan matured early on 2 September 2019.

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 stockmarket 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 2.25% of the investment.

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
Societe Generale default = Return of capital dependent on value of collateral, current market conditions and time to maturity
If not
Macquarie Bank Ltd, Lloyds Bank Plc, Standard Chartered Bank and/or Santander UK Plc default = Return of the portion of the investment linked to the defaulting institution up to 25% at risk - subject to potential total loss
If not
If on any annual observation date from year three onwards the FTSE 100 Index closes at or above its Initial Index Level = Return of invested capital plus a 9.4% gain for each year the plan has been in force
If not
If at the end of the term, the Index is no more than 30% below its Initial Index Level = Return of invested capital only
If not
As the 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 9.4% potential coupon, payable from year three onwards if the FTSE 100 index is at or above its starting level, 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 needs to be acknowledged that the barrier protection at 70% of initial index level is lower than many other products in the market, this needs to be considered in the context that it is only observed at the end of the ten years, which repositions the risk when comparing to a shorter term 5 or 6 year product, and only in the event that an earlier kick-out maturity was not triggered. 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 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 – 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.

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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 25 and 26 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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