Below are the Structured Note issues that are currently available via Ethical Offshore Investments.
Structured Notes
While Structured Notes are not our core investments (we prefer to use daily traded managed funds, ETF’s & direct shares), we understand and acknowledge that there is a demand for such products, especially in the Offshore market.
These products can provide additional diversification and risk management for portfolios.
We will only have arrangements with providers that are regulated and adhere to our strict sustainable and ethical business management concept.
** All clients of Ethical Offshore Investments will receive a minimum 1% Commission Rebate credit on investments made into the Structured Notes listed below **
Prime Income Note (#13)
7.60%pa (USD) / 6.40%pa (GBP
This Note offers a potential coupon of up to 7.60%pa for each year held, if all of the indices are at or above 85% of their initial strike levels on any semi-annual observation date. The Note has a memory feature which means that when a coupon payment is made, it will also include any previously missed coupon payments.
The Note also has the potential to mature early if all of the indices are at or above their initial strike levels on the semi-annual observation dates, from year 1 onwards. If the Note Autocalls, investors get 100% of their invested capital back plus the coupon payment.
Underlying indices: S&P 500 index / Nikkei 225 index / Euro STOXX 50 index
Conditional Coupon: 7.60%pa (USD) / 6.40%pa (GBP)
Coupon Trigger Barrier: 85% of initial strike levels
Investment Term: 6 years (max)
Autocall Frequency: Semi-annual from end of year 1
Autocall Trigger: 100% of initial level
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 2 May 2024
3 Year Fixed Coupon Dual Index Income Note
6.75%pa (USD) / 6.00%pa (GBP)
This income based note will pay a fixed income coupon on the annual payment dates until maturity, irrespective of the performance of the underlying indices. At the final observation date, if the underlying’s are at or above the Capital Protection Barrier, then full capital is returned.
USD: 6.75%pa (paid annually) gross
GBP: 6.00%pa (paid annually) gross
Underlying indices: Japan: Nikkei 225 Index / US: S&P 500 Index
Investment Term: 3 years
Capital Protection Barrier: 75% Final Level (European Style) Barrier
Trades by: 7 May 2024
100% Capital Protected Note on the S&P 500 Index (#5)
This 6 year fixed term investment offers a return of up to 130% participation in the quarterly averaged performance of the S&P 500 Index.
Guarantor: BNP Paribas (Aa3 / AA- / A+)
Underlying: S&P 500 Index (SPX)
Term: 6 years
Participation rate: 130% of the quarterly averaged performance of the S&P 500 Index (SPX)
Capital Protection: Minimum of 100% of capital returned at maturity **
** unless a Credit Event occurs with the issuer
Closing date: 10 May 2024
95% Capital Protected Autocall Note
8.00%pa (USD) / 7.30%pa (GBP)
Potential coupon of up to 8.00%pa for each year held, if the underlying indices are above their initial strike level on any semi-annual Observation Date from year 3 onwards.
Guarantor: Morgan Stanley B.V. (A1 / A+ / A-)
Underlying: S&P 500 Index, Nikkei 225 Index, Euro Stoxx 50 Index
Term: 6 years (max)
Conditional Coupon: 8.00%pa (USD) / 7.30%pa (GBP)
Autocall Observation: Semi-annual from year 3
Autocall Trigger: 100% of initial level
Capital Protection: Minimum of 95% of capital returned at maturity **
** unless a Credit Event occurs with the issuer
Closing date: 10 May 2024
85-60 Memory Income Autocall
8.00%pa (USD) / 7.25%pa (GBP)
This income based note has the opportunity for an early maturity from 12 months. It features a semi-annual coupons which is payable when all of the underlying indices are at or above 85% of their initials at any observation date. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
USD: 8.00%pa (4.00% Semi-Annually) gross
GBP: 7.25%pa (3.625% Semi-Annually) gross
Underlying indices: UK: FTSE 100 Index / Europe: Euro Stoxx 50 / Japan: Nikkei 225 / US: S&P 500
Autocall Trigger: 100% of initial level
Income Trigger: 85% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 14 May 2024
85 – 65 Memory Income Autocall
7.40%pa (USD) / 6.60%pa (GBP)
This income based note has the opportunity for an early maturity from 24 months. It features a quarterly coupon which is payable when all of the underlying indices are at or above 85% of their initials at any observation date. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
USD: 7.40%pa (1.85% paid quarterly) gross
GBP: 6.60%pa (1.65% paid quarterly) gross
Underlying indices: UK: FTSE 100 Index / Italy: FTSE MIB Index / US: S&P 500 Index
Autocall Trigger: 100% of initial level
Autocall observation: Quarterly from end of year 2
Income Trigger: 85% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 16 May 2024
3 Year Triple Index Fixed Income
7.25%pa (USD) / 6.45%pa (GBP)
This income based note will pay a fixed income coupon on the quarterly payment dates until maturity, irrespective of the performance of the underlying indices. At the final observation date, if the underlying’s are at or above the Capital Protection Barrier, then full capital is returned.
USD: 7.25%pa (1.8125% paid quarterly) gross
USD: 6.45%pa (1.6125% paid quarterly) gross
Underlying indices: Japan: Nikkei 225 Index / Europe: Euro Stoxx 50 Index / US: S&P 500 Index
Investment Term: 3 years
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 22 May 2024
US Tech Low Hurdle Autocall
24.00%pa
This growth based Note has the opportunity for an early maturity after 6 months. The underlying basket is observed daily between the strike date and the 3rd observation at month 12. If the underlying companies have not fallen by more than 40% at any point, then the Autocall barrier will change to 60% and the Note will mature early (Glider Barrier).
If the Glider Barrier is breached, the Glider feature will not come into effect and the autocall barrier will remain ta 95% throughout. If on any quarterly observation date from observation 4 and all of the underlyings are at or above the Autocall Trigger, the investment will autocall, investors will receive 100% of their capital back plus 6% for each quarter the Note has elapsed.
USD: 24.00%pa (6.00% quarterly) gross
Underlyings: Amazon Inc / Microsoft Corp / Tesla Inc / Nvidia Corp
Investment Term: 4 years (max)
Autocall Trigger: 95% of initial level with 60% Glider at month 12
Capital Protection Barrier: 50% Final Level (European style) Barrier
Trades by: 23 May 2024
4 Year Mega Tech Fixed Coupon
10.00%pa (USD)
This Note offers a fixed coupon of 10.00%pa (2.5% paid quarterly) irrespective of the performance of the underlying companies. The Note can mature early if at any of the quarterly observation dates from month 18 onwards, the value of the underlying companies are at or above their initial level.
Underlying companies: Advanced Micro Devices / Netflix Inc / NVIDIA Corp
Fixed Coupon: 10.00%pa USD (2.50% paid quarterly)
Investment Term: 4 years (max)
Autocall Frequency: Quarterly from 18 months
Autocall Trigger: 100% of initial level
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 23 May 2024
4 Year Mega Tech Quarterly Phoenix Autocall
22.00%pa (USD) / 19.00%pa (GBP)
This Note offers a potential coupon of up to 22.00%pa (5.50% paid quarterly) if all of the underlying companies are at or above 90% of their initial levels on the quarterly observation dates. The Note has a memory feature which means when a coupon is paid, it includes any previously missed coupons.
On each quarterly observation date from month 18, if all of the underlying companies are at or above their initial levels, the Note will Autocall with investors receiving 100% of their capital back, plus the coupon and any previously unpaid coupons.
Underlying companies: Meta Platforms Inc / Netflix Inc / NVIDIA Corp
Conditional Coupon: 22.00%pa USD (5.50% paid quarterly)
Conditional Coupon: 19.00%pa USD (4.75% paid quarterly)
Investment Term: 4 years (max)
Autocall Observation: Quarterly from month 18
Autocall Trigger: 100% of initial level
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 23 May 2024
85 / 65 Index Phoenix Autocall with Memory
7.20%pa (USD) / 6.20%pa (GBP)
This 6 year (max) income based note has the opportunity for an early maturity from 24 months. It features a semi-annual coupons which is payable when all of the underlying indices are at or above 85% of their initials at any observation date. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
USD: 7.20%pa (3.60% Semi-Annually) gross
GBP: 6.20%pa (3.10% Semi-Annually) gross
Underlying indices: Australia: S&P/ASX 200 Index / Europe: Euro Stoxx 50 / Japan: Nikkei 225
Autocall Trigger: 100% of initial level
Autocall observation: Semi-annual from end of year 2
Income Trigger: 85% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 23 May 2024
6 Year Global Markets Quarterly Autocall with Memory
8.20%pa (USD) / 6.80%pa (GBP)
This income based note has the opportunity for an early maturity from 24 months. It features a quarterly coupon which is payable when all of the underlying indices are at or above 90% of their initials at any observation date. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
USD: 8.20%pa (2.05% quarterly) gross
GBP: 6.80%pa (1.70% quarterly) gross
Underlying indices: US: S&P 500 Index / Europe: Euro Stoxx 50 / Japan: Nikkei 225 / UK: FTSE 100 Index
Autocall Trigger: 100% of initial level
Autocall observation: Semi-annual from end of year 2
Income Trigger: 90% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 23 May 2024
S&P Index Callable Note
8.00%pa
This Note has the opportunity for an early maturity from 12 months. If the Issuer ‘Calls’ the Note, clients will receive their invested capital back, plus a snowballing coupon of 8.00% for each annual period that has elapsed.
If the Note is not called by the issuer prior to the 6 year maturity, and the S&P 500 Index is greater than or equal to 70% if its initial strike level on the Final Observation Date, the total accrued coupons of 48.00% are paid, as well as the return of 100% of the invested capital
USD: 8.00%pa gross
Underlying index: S&P 500 Index
Investment Term: 6 years (max)
Callable Observation: Annually from end of year 1
Capital Protection Level: 70% at Maturity
Trades by: 23 May 2024
100% Capital Protected Index Callable Note
8.30%pa (USD) / 6.75%pa (GBP)
This Note has the opportunity for an early maturity from 12 months if all of the underlying index is at or above 105% of its initial level. If the Note matures, clients will receive their invested capital back, plus a snowballing coupon for each annual period that has elapsed.
USD: 8.30%pa gross
GBP: 6.75%pa gross
Underlying index: Euro Stoxx 50 Index
Investment Term: 6 years (max)
Autocall Trigger: 105% of initial level
Autocall Observation: Annually from end of year 1
Capital Protection Level: 100% at Maturity **
** unless a Credit Event occurs with the issuer
Trades by: 23 May 2024
100% Capital Protected Autocall
8.40%pa
This growth note has the opportunity for an early maturity from 36 months if all of the underlying indices are at or above their initial levels. If the note ‘autocalls’, clients will receive their invested capital back, plus a snowballing coupon for each semi-annual period that has elapsed.
USD: 8.40%pa (4.20% semi-annually) gross
Underlying indices: Switzerland: Swiss Market Index / Japan: Nikkei 225 Index / Europe: Euro Stoxx 50 / US: S&P 500 Index
Autocall Trigger: 100% of initial level
Autocall Observation: Semi-annual from end of year 3
Investment Term: 6 years (max)
Capital Protection Barrier: 100% Capital Protected at maturity **
** unless a Credit Event occurs with the issuer
Trades by: 24 May 2024
70 – 60 Memory Income Autocall
7.20%pa
This income based note has the opportunity for an early maturity from 12 months. It features a semi-annual coupon which is payable when all of the underlying indices are at or above 70% of their initials at any observation date. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
USD: 7.20%pa (3.60% paid semi-annually) gross
Underlying indices: Switzerland: Swiss Market Index / Europe: Euro Stoxx 50 Index / Japan: Nikkei 225 Index / US: S&P 500 Index
Autocall Trigger: 100% of initial level
Autocall Observation: Semi-annual from end of year 1
Income Trigger: 70% of initial level
Investment Term: 5 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 28 May 2024
Classic Autocall Note (#18)
12.00%pa (USD) / 10.00%pa (GBP)
This Note offers a potential coupon of up to 12.00%pa for each year held, if the underlying assets are above their initial strike levels on any semi-annual observation date, from the end of year one onwards
Underlying indices: Euro Stoxx 50, Nikkei 225, S&P 500
Conditional Coupon: 12.00%pa USD / 10.00%pa GBP
Autocall Trigger: 100% of initial level
Autocall Observation: Semi-annual from end of year 1
Investment Term: 6 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 7 June 2024
** the commission rebate applies to all Structured Notes invested via Ethical Offshore Investments.
With our partnerships with various Structured Note providers, it is possible to create a bespoke Structured Note inline with an individuals personal investment return & risk tolerance requirements.
What are Structured Notes?
Structured products / notes are generally a type of fixed-term investment where the amount you earn depends on the performance of a specific market (such as the FTSE 100) or specific assets (such as shares in individual companies).
There are two main types of structured product:
- structured deposit
- structured investment
Some structured investments offer a degree of capital protection, while others do not. The income or growth is usually not guaranteed and you may get no return on your investment. Even where there is capital protection, the deduction of fees and charges could mean you could get less than you put in.
Structured deposits and structured investment products with some capital protection are often purchased by customers looking for alternatives to savings accounts and other deposit-based products.
However, these products often have complicated features that can make it difficult to understand the return you are likely get, including the risk of getting no return on your investment.
It is important that you take the time to understand and assess the product you’re thinking of buying before investing.
Complex products do not necessarily offer better returns than simpler ones, such as fixed-term deposits.
Courtesy of https://www.fca.org.uk/consumers/structured-products