The UK Autocall Fund A GBP: In a class of its ownMarch 18, 2015 - 19:00
The UK Autocall Fund, Class A GBP (the 'Fund') is approaching an autocall
If the closing level
of the FTSE™ 100 Index ('FTSE') on 8th
April 2015 is at or above 6276.94, the Fund’s investment in the underlying
autocall strategy will mature with a value of GBP 145.64 per Share. It is currently available below this level.
Reinvestment of the Fund’s assets
in a new Autocall Strategy
If this happens, the Fund will reinvest these proceeds in
a new autocall strategy in accordance with the Fund’s investment objective and
This will start a new five year
investment cycle (which will be shorter if an autocall event is triggered) with
Indicative terms of the new
Based on current market conditions, indications suggest
that the new autocall strategy could offer a growth amount of approximately 7.0%
to 8.0% per annum* (to be calculated on the reinvestment amount of GBP 145.64
An autocall event will be
triggered if the closing level of the FTSE on the second, third, fourth or
fifth anniversary of the start date of the new autocall strategy investment
cycle (the 'Start Date') is at or
above the closing level of the FTSE on the Start Date (the 'Start Level').
As for the original investment cycle, your capital is at
risk if the FTSE closes on any day during the investment cycle at or below 50%
of the Start Level of the FTSE. The
exact terms of the new autocall strategy will be determined on the day on which
the Fund reinvests in the new autocall strategy, which is expected to be 8th
April 2015. If an Autocall Event does occur and a new five year
investment cycle begins then the Company may reduce the Management and
Administration Fee from 0.90% per annum to 0.20% per annum for the period of
the new five year investment cycle (which will be shorter if an autocall event
What if an Autocall Event does
not occur on 8th April 2015?
If the closing level of the FTSE on 8th April
2013 is below 6276.94, then the Fund will remain invested in the current
autocall strategy. In that case the next
autocall observation date will be 8th April 2016.
Should you have any questions about your investment in
the Fund please contact your financial advisor.
* This is
only an indication of the potential annual growth amount. The actual amount will depend on market
pricing at the time that the Fund invests in the new autocall strategy and may
be lower than indicated above.
David has been involved in equity derivatives, equity structuring and the structured product market for over 25 years. Before setting up CUBE in 2013 David worked at J.P. Morgan, Barclays and RBS. David has worked with and for retail product providers, discretionary managers and institutional investors.