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Arcus 6Y UK & Europe Defensive Step-Down Kickout Plan (MS23)

Type of product Growth
Type of return Investment
Investment term 6 years
Underlying FTSE 100 Index and EURO STOXX 50 Index
Counterparty   Morgan Stanley
Promoter Arcus
UKSPA product code   1260 - Kick Out
Summary Risk Indicator   5
Return   Potential 9.30% for each year that's passed since the Start Date (paid at maturity)
Kick Out Barrier   Reduces from 100% in Y3 to 80% in Y6
Capital at Risk Barrier   65% European
S&P Rating A- (stable outlook)
Fitch Rating A+ (stable outlook)
Moody's Rating A1 (stable outlook)
Important Dates  
Closing Date ISA Transfer Date Strike Date Maturity Date
20/09/2024 10/09/2024 27/09/2024 27/09/2030
Possible Early Maturity Dates  
Year 3 Year 4 Year 5
27/09/2027 27/09/2028 27/09/2029
Description There are set dates during the term ('Early Maturity Dates') when investors might receive a return. If both the FTSE 100 and EURO STOXX 50 close at or above the required level on one of these dates (please see brochure for details), the Plan will mature early and repay the Amount Invested, together with a fixed return equal to 9.30% p.a. for each year that has passed since the Start Date (not compounded).

If there is no early maturity and both indexes close below 65% of their Start Levels on the Maturity Date, the investment will have earned no return.

If the Plan matures early, capital is repaid in full. However, if the Plan continues for the full term, capital is at risk:
  • If both indexes close at or above 80% of their Start Levels at maturity, investors receive a fixed return of 55.80% and capital is repaid in full
  • If both indexes close at or above 65% of its Start Level at maturity, capital is repaid in full.
  • If either index closes below 65% of its Start Level at maturity, investors will make a loss. they will lose 1% for every 1% fall in the worst performing index from its Start Level.

Contract Details

  Cash ISA Equity ISA Direct ISA Transfer SIPP
Availability
Minimum contribution n/a £3,000 £3,000 £3,000 £3,000
* Credit ratings correct as of 31July 2024. ** Minimum contributions do not include any applicable adviser charges. † This plan is available for investment through third party SIPP Providers. 

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