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RISK FACTORS |
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Is
this product right for me?
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The table below should help you decide if
this Plan is right for you:
• I am willing to invest
for a set period of time, known as the investment term; (see
pages 2, 6, 7 & 12 of the plan brochure)
• I
am not likely to need access to my money during the
investment term; (see page 12 of the plan brochure)
•
Although the Plan might pay out early I understand this is a
six-year investment; (see pages 6 & 7 of the plan brochure)
• I
want the potential to benefit from any rises in the Index
but do not want to invest directly in the FTSE 100; (see
pages 3, 8 & 11 of the brochure)
• I
know that the value of the Index can fall as well as rise;
(see page 8 of the brochure)
• I
understand that although the assets will be provided by
Rabobank, a major financial institution with a current credit
rating from Standard & Poor’s or equivalent of ‘AA’, there
is a chance that they may default on the payments due and
this means that I may lose some, or all, of my investment,
known as the counterparty risk; (see pages 4, 5, 9 & 12 of
the brochure)
• I
am satisfied with a potential return of 9% p.a. (not
compounded) and accept the fact that if the Index were to
rise more than this I would not benefit from any growth
above that provided by the Plan (see page 2, 6, 7 & 9 of the
brochure)
• I
am prepared and can afford to accept the investment risks;
(see pages 5, 7, 9 & 11 of brochure) |
What are the risks involved with investing?
• The investment
return you receive will depend on the performance of the FTSE 100 and
it is possible that you might not receive any investment return at
all. Please see the ‘How are my returns calculated?’ section and
table on page 6 of the brochure.
• If the early maturity conditions are achieved you will receive 9%
(not compounded) for each year the Plan has been in force and the
Plan will mature. This means that you will need to consider
reinvestment options available at that time.
• If the Index has grown by more than this you will not receive the
benefit of any growth over the predetermined levels stated.
• The payment and timing of the maturity proceeds will depend on the
closing level of the Index on the Measurement Dates, as set out in
the ‘How is the Investment Return Calculated’ and ‘How is the
Capital Return Calculated’ sections on pages 6 & 7 of the plan
brochure. The Plan may therefore be affected by short-term market
fluctuations.
• The capital return at maturity will also depend on the performance
of the Index and it is possible that you could lose some, or all, of
the amount you invest. The capital return will be affected if the
Index has fallen by more than 50% from the Opening Level during the
investment term. Please see the ‘How is the capital return
calculated?’ Section on page 7 of the brochure.
• If your circumstances change and you need to withdraw your
investment early we will have to sell your Securities back to the
Issuer and the value will depend on the price they are prepared to
pay. You will also have to pay an administration charge. You should
note that while Rabobank intends to make a secondary market a
material change in market or corporate conditions could affect this.
• When you invest in the Plan, we will use your money to acquire, on
your behalf, Medium Term Notes or Warrants (“Securities”) which are
designed to have the characteristics required to achieve the
investment objectives of the Plan. The Securities will be issued by
Rabobank which has a current credit rating of ‘AAA’ by Standard and
Poor’s as at the date of this brochure. As with any similar
investment the security of your Plan is ultimately dependent on
Rabobank making to us the payments due from the Securities to allow
us to pay you any investment return and any repayment of your
investment capital. If Rabobank were to fail to meet the repayments
due you would lose some, or all, of your investment.
• The actual and perceived ability of Rabobank as issuer to meet its
obligations may affect the market value of the investment over the
term. If Rabobank fails to meet its obligations, you may get back
less than is due to you or nothing at all. In addition, the terms of
the investment may permit Rabobank as issuer to delay, reduce or
withhold payments. These provisions are not intended to circumvent
what is legally due to investors but are intended to cover
unforeseen events which affect your return. For example, a
suspension or delay in calculating the Index level, errors in
calculation or changes to the way the Index are calculated.
• If you tell Meteor that you want to cancel your investment after
they have bought the Securities you will only get back the value of
the Securities when they sell them, which is likely to be less than
your original investment.
• The values of any tax reliefs will depend on your individual
circumstances. You should note that the levels and bases of taxation
could change in the future.
Please refer to the Brochure and the Terms & Conditions for full
details.
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