To show you this page, we placed cookies on your computer. If you continue on this website, we will use further cookies to maximise your experience and help us to understand how we can improve it.

Learn More I understand, please dismiss this notification

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 19/07/2019

Societe Generale UK Step Down Kick-Out Plan (UK3) Issue 6


Please note, this plan is available on an advised basis only. If you are interested in this plan,
please contact us to arrange a consultation.

Overview:

Potential for a 7.65% gain for each year held, payable on any anniversary from year two onwards provided the FTSE 100 Index is at or above a reducing reference level - see further info for details.

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

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 26/07/2019 26/07/2027
Closing Date
19/07/2019
ISA Transfers
28/06/2019
Strike Date
26/07/2019
Maturity Date
26/07/2027

Possible Early Maturity Dates:

26/07/2021 26/07/2022 26/07/2023 26/07/2024 28/07/2025 27/07/2026

Credit Exposure:

Three counterparties - see description (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
BBB

S&P Rating*

AA-
A

Fitch Rating*

A2
Baa3

Moody's Rating*

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

Description

This maximum eight-year 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 100 Index closes at, or above a reducing Reference Level which reduces in year five. The Reference Level in year two, three and four is 100% of the Initial Index Level and this level is reduced by 5% on each subsequent anniversary and so will be 95%, 90%, 85% and 80% of the initial level for years five, six, seven and eight respectively.

If the plan fails to mature early and the Final Index Level is below 80% 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 40% below the Initial Index Level. In this event, investors will suffer a reduction to their invested capital of 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 45% below the Initial Index Level, investors will suffer a 45% reduction to their invested capital.

This plan is issued by SG Issuer who are a wholly owned and guaranteed subsidiary of 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 Gilts, Investment Grade Bonds and/or Equities. Collateral is independently monitored by The Bank of New York Mellon, and the value will be adjusted to match the value of the plan on a day to day basis, 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 three UK financial institutions. The Standard & Poor's ratings for the three institutions are; Barclays plc (BBB) Lloyds Banking Group plc (BBB+), and HSBC Holdings plc (A). 33.33% of the investment is exposed to each institution, and should any of the three financial institutions be unable to meet their wider financial obligations, that proportion of the investment could suffer a loss.

This plan is available on an advice only basis. To invest in this plan, please do not hesitate to get in touch on 0191 281 8811 The closing date for Stocks & Shares ISA transfers is 28 June 2019 and for Cash ISA transfers is 5 July 2019. Lowes will not charge an ongoing fee or receive any annual commission in respect of this investment. For investments over £100,000 please contact us for preferential fees.

Contract Details

Initial Index Level:

The closing level of the Index on 26 July 2019.

Final Index Level:

The closing level of the Index on 26 July 2027. However this plan has matured early on 26 July 2023.

Cash ISA Equity ISA Direct ISA Transfer SIPP **
Availability
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 growth 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 at maturity, unless the Final Index Level is more than 40% 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: A maximum of 1.5% 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. 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: £90

Early ISA Transfer: £90

Other Charges: £15 for any proceeds to be forwarded by same day transfer (CHAPS) or no charge for standard electronic transfers (BACS) or cheque.

Summary Table

Event Outcome
Societe Generale default = Return of any capital subject to insolvency proceedings - potential total loss
If not
Barclays plc, HSBC Holdings plc and/or Lloyds Banking Group plc default = Return of the portion of the investment linked to the defaulting institution up to 33.33% at risk and subject to potential total loss
If not
If on any annual observation date from year two onwards the FTSE 100 Index 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 Index is no more than 40% below its Initial Index Level = Return of invested capital only
If not
As the Index is more than 40% 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.

The latest FTSE 100-linked Plan offered by Societe Generale can mature on any anniversary from year two onwards, provided the FTSE is at or above a reducing reference level, returning a gain of 7.65% for each year the plan has been in force. The extended maximum term of eight years provides increased opportunities for the investment to successfully generate positive returns. As such, we feel that this plan could be considered for use in a diversified portfolio.

Read our review 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.

Our Fees

Please note this investment is available on an advice-only basis. This means that the product provider will only usually accept applications for this investment when they are the result of a personal recommendation from an Independent Financial Adviser.

We would very much welcome the opportunity to conduct a review of your financial circumstances and issue appropriate advice. We advise across a wide range of investments, taking a holistic view of clients' requirements, of which this type of investment is just one element.

Lowes is a registered firm of Independent Financial Advisers, established for over 40 years and one of the UK's few firms of Chartered Financial Planners.

This information should not be construed as personal advice or a recommendation to invest.

If you are interested in discussing the suitability of this investment for you, you should contact us on 0191 281 8811 and we will be delighted to arrange for a Lowes Consultant to contact you to organise a free, no obligation consultation.

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 7, 8 and 14 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.

giraffe Do you need any help?