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 1.0% Commission Rebate credit on investments made into the Structured Notes listed below **
Morgan Stanley Classics Note (7)
8.00%pa (6.40%pa GBP)
Potential coupon of 8.00% for each year held if the underlyings are above their initial strike level on any semi-annual observation dates from end of year 1 onwards.
Issuer: Morgan Stanley (A2 / A / BBB+)
Underlying: S&P / ASX 200 Index, Euro Stoxx 50 Index, S&P 500 Index
Term: 6 years (max)
Conditional Coupon: USD 8.00% p.a. / GBP 6.40%p.a.
Autocall Observations: Semi-annual from end of year 1 onwards
Autocall Barrier: 100%
Protection Barrier: 70%
Closing date: 12 February 2021
Societe Generale UK Growth Autocall
8.00%pa (USD & GBP)
Potential coupon of 8.00% for each year held if the underlying is above its initial strike level on any annual observation dates from end of year 1 onwards.
Issuer: Societe Generale (A1 / A+ / A)
Underlying: FTSE 100 Fixed Dividend Equal Weight Custom (UKXFD) Index
Term: 6 years (max)
Conditional Coupon: USD 8.00% p.a.
Autocall Observations: Annual from end of year 1 onwards
Autocall Barrier: 105% Year 1 then 100% from years 2 – 6
Protection Barrier: 60%
Closing date: 5 February 2021
BBV A Classic Autocall Note
10%pa for USD / 8%pa for GBP
Potential coupon of 10% (USD) / 8% (GBP) for each year held if the underlyings are above their initial strike level on any semi-annual observation date from end of year 1 onwards.
Issuer: BBVA Global Markets B.V.
Guarantor: Banco Bilbao Vizcaya Argentaria, S.A. (A3 / A- / A)
Underlying: S&P/TSX 60 Index, Nasdaq 100 Index, Hang Seng Index, FTSE 100 Index
Term: 6 years (max)
Conditional Coupon: 10%p.a. (USD) / 8%pa (GBP)
Autocall Observations: Semi-annual from end of year 1 onwards
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 5 February 2021
BBV A Global Income Note 5 – GBP
5.70%pa – GBP
Potential coupon of 5.70% for each year held if the underlyings are above their initial strike level on any semi-annual observation date from end of year 1 onwards.
Issuer: BBVA Global Markets B.V.
Guarantor: Banco Bilbao Vizcaya Argentaria, S.A. (A3 / A- / A)
Underlying: S&P/TSX 60 Index, Euro Stoxx 50 Index, Hang Seng Index, FTSE MIB Index
Term: 6 years (max)
Conditional Memory Coupon: 5.70%p.a.
Autocall Observations: Semi-annual from end of year 1 onwards
Autocall Barrier: 100%
Coupon Barrier: 90%
Protection Barrier: 65%
Closing date: 5 February 2021
BBV A Global Income Note 5 – USD
USD 7.50%pa
Potential coupon of 7.50% for each year held if the underlyings are above 90% of their initial strike level on any semi-annual coupon observation dates from year one onwards.
Issuer: BBVA Global Markets B.V.
Guarantor: Banco Bilbao Vizcaya Argentaria, S.A. (A3 / A- / A)
Underlying: Nasdaq 100 Stock Index, Hang Seng Index, S&P TSX 60 Index, FTSE MIB Index
Term: 6 years (max)
Conditional Memory Coupon: USD 7.50%pa
Coupon Observations: Semi-annual at 90% of initial strike level
Autocall Observations: Semi-annual from end of year 1
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 15 January 2021
BBV A Quarterly Bonus Note 11
16.0%pa (USD) / 12.6%pa (GBP)
Potential coupon of 16% for each year held if the underlyings are above their initial strike level on any quarterly observation date from the end of quarter 2.
Issuer: BBVA Global Markets B.V.
Guarantor: Banco Bilbao Vizcaya Argentaria, S.A. (A3 / A- / A)
Underlying: S&P/TSX 60 Index, Euro Stoxx 50 Index, Hang Seng Index, iShares MSCI Brazil ETF
Term: 6 years (max)
Conditional Coupon: USD 16.0% p.a. / GBP 12.6% p.a.
Autocall Observations: Quarterly from end of quarter 2
Autocall Barrier: 100%
Protection Barrier: 60%
Closing date: 5 February 2021
BBV A Tech Income Note 6
USD 9.40%p.a.
Potential coupon of 9.40%pa for each year held if the underlyings are above 65% of their initial strike level on any quarterly observation date from end of year one onwards.
Issuer: BBVA Global Markets B.V.
Guarantor: Banco Bilbao Vizcaya Argentaria, S.A. (A3 / A- / A)
Underlying: Amazon.com Inc, Apple Inc, Microsoft Corp, Netflix Inc
Term: 6 years (max)
Conditional Memory Coupon: USD 9.40%p.a.
Coupon Observation: Quarterly at 65% of initial strike level
Autocall Observation: Quarterly from end of year 1
Autocall Barrier: 100%
Protection Barrier: 50%
Closing date: 12 February 2021
** the commission rebate applies to all Structured Notes invested via Ethical Offshore Investments.
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