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Is this product
right for you? |
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To help you
decide if the Plan is right for you, here is a summary of key points
you should think about. Before investing, please consider not only
the benefits but also all of the risks associated with buying such a
product and the commitment you are making.
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Yes ,
I am happy to invest because:
• I want to know that my original capital will be repaid if
I leave it invested until
Maturity.
• I would like the potential for a higher return from the
stock market than I would get from a bank deposit.
• I think the proposed rates to be a good potential return.
• I want an investment that is taxed as Capital Gain rather
than income, and like the possibility of using my Capital
Gains Tax exemption in the year that it matures.
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No ,
this plan probably isn’t right for me
because:
• I do not have other funds available for
emergencies, and cannot risk having to sell the investment
at a loss before the end of the Investment Term.
• I want a regular income from my investment, and do not
want to risk receiving no income from it.
• I do not have £3,600 to invest.
• I might want to add to my investment from time to time
during the Investment Term.
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Things to consider
Loss due to early withdrawal
Your circumstances could change during the Investment
Term, forcing you to withdraw from the Plan before the
Investment End Date. In this case, you could lose some
of the money you invested. See “Can I withdraw my
money?” on page 11 of the plan brochure.
Risk of default by the Issuer and Counterparty
Investing in the Plan is not the same as putting your
money in a deposit account, and the Plan is not directly
covered by a deposit guarantee scheme. Your money will
be invested in investments with terms designed to meet
the investment objectives of the Plan.
The Plan Manager intends to select and purchase on your
behalf preference shares. It is expected that the Issuer
of such preference shares will use the proceeds of the
issue to enter into a financial contract with Citigroup
Financial Products Inc. whose obligations under the
financial contract will be guaranteed by Citigroup Inc.
representation or warranty regarding the accuracy,
completeness or adequacy of such information and no
liability to any party is accepted by Citigroup in
connection with such information.
As at 15th June 2009 the longer term unsecured senior
debt of Citigroup Inc. was rated A by Standard & Poor’s,
A3 by Moody’s and A+ by Fitch. These ratings may be
subject to change prior to the maturity of your Plan.
Further information about Citigroup, including
additional information relating to Citigroup credit
ratings, is available by accessing the following
Citigroup website:
www.citigroup.com/citi/fin/rate.htm
Neither Citigroup Inc. nor any of its affiliates in any
way endorses the Plan, its suitability for investors or
the promotional material associated with the Plan and
does not make any representation or warranty regarding
the accuracy, completeness or adequacy of such
information and no liability to any party is accepted by
Citigroup in connection with such information.
The return of your Capital and any Redemption Bonus will
depend on the ability of the Issuer and the Counterparty
of the securities (i.e. both Citigroup Financial
Products Inc and Citigroup Inc) to meet this and other
financial commitments. It is you, and not the Plan
Manager, who bears this credit risk, and in the case of
default you may lose some or all of your Capital.
No dividends or distributions from companies in the
Index
Investing in the Plan is not the same as investing in
shares of the companies that make up the Index. You will
not receive dividends or distributions from the
companies included in the Index. Furthermore, because
the income of the Plan is fixed, you may receive a lower
return than if you invested directly in the shares.
Charges and loss of interest when transferring an
existing ISA
If you transfer an existing ISA your ISA Manager may
charge you an exit fee, and it will take some time for
the funds to be transferred. You will not receive
interest on your money between the time you transfer out
of an existing ISA until the Investment Start Date.
Although early investors receive a discount on the
purchase price of the securities in the Plan, this may
be worth less than the interest or growth you could
otherwise have received.
Tax regulations may change
Tax rates and the basis of taxation are subject to
change, and the value of tax reliefs depends on your
personal circumstances. Specifically, the favourable tax
treatment of ISAs may change in the future.
Please refer to the Brochure and the Terms & Conditions for full
details. |
