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 **
BBVA Semi-Annual Classic Autocall
GBP 14.00%pa / USD 15.00%pa / EUR 13.00%pa
This growth note has the opportunity for an early maturity from 12 months if all of the underlying indices are at or above their initial level. If the Note autocalls, clients will receive their invested capital back, plus a snowballing coupon for each semi-annual period that has elapsed.
GBP: 14.00%pa (7.00% semi-annually) gross
USD: 15.00%pa (7.50% semi-annually) gross
EUR: 13.00%pa (6.50% semi-annually) gross
Underlyings – US: S&P 500 index / Europe: Euro Stoxx 50 index / Australia: ASX 200 index / Japan: Nikkei 225 index
Autocall Trigger: 100% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 4 June 2023
BBVA 85 – 60 Memory Income Autocall
GBP 8.00%pa / USD 8.40%pa / EUR 7.30%pa
This income-based note has the opportunity for an early maturity from 12 months. It features a quarterly coupon payment which is payable when all of the underlying assets are at or above 85% of their initial level 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.
GBP: 8.00%pa (2.00% quarterly) gross
USD: 8.40%pa (2.10% quarterly) gross
EUR: 7.30%pa (1.825% quarterly) gross
Underlyings – US: S&P 500 index / Japan: Nikkei 225 index / Europe: Euro Stoxx 50 index / Australia: S&P ASX 200 index
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: 7 June 2023
BBVA Prime Income Note #5
8.40%pa USD / 8.10%pa GBP
Potential coupon of up to 8.40%pa for each year held if the underlying assets are above 85% of their initial strike level on any semi-annual coupon 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: S&P 500 Index, Eurostoxx 50 Index, Nikkei 225 Index
Term: 6 years (max)
Conditional (Memory) Coupon: 8.40%pa (USD) / 8.10%pa (GBP)
Coupon Observations: Semi-annual at 85% of strike level
Autocall Observations: Semi-annual from end of year 1
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 9 June 2023
Société Générale
Electric Vehicles Enhanced 40-40 Memory Income – 22.00%pa
This income based note has the opportunity for an early maturity from 12 months. It features a quarterly coupon rate of 5.50% (22.00% per annum) which is payable when the underlying’s are at or above 40% of their initial level 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.
Unlike a standard autocall, this product includes a reducing ‘Knock-Out’ feature. The Autocall/Knock Out trigger, this will start at 90% of initial levels at 12 months and is reduced by 5% every quarter (floored at 40%). If on any quarterly Knock-Out observation date, and of the 3 underlying stocks are at or above the Knock-Out Trigger, those particular stocks will ‘Knock Out’. Once ALL 3 underlying stocks have been Knocked-Out, the investment will Autocall, investors will receive their initial capital plus the coupon for that quarterly period is paid and the investment will end.
USD: 22.00% p.a. (5.50% Quarterly) Gross
Underlyings – Tesla Inc. / NIO Inc. / Rivian Automotive Inc.
Income Trigger: 40% of initial level
Investment Term: 4 years
Capital Protection Barrier: 40% Strike with Geared Put (at maturity)
Trades by: 12 June 2023
BBVA Enhanced Protection Classic Autocall
USD: 11.00% p.a.
This classic autocall note has the opportunity for an early maturity from 12 months if all underlying indices are at or above their initial level. If the note autocalls, clients will receive their invested capital back, plus a snowballing coupon for each quarterly period that has elapsed
It also features a 50% Strike with Geared Put for the protection barrier, meaning the capital will be returned in full if the underlying’s are at or above the capital protection barrier (50%). Should any be below the threshold, then the capital will be reduced on a 2-for-1 basis from 100%.
More details on this feature can be found on page 2 of the factsheet and the link below.
USD: 2.75% Quarterly (11.00% p.a.) Gross
Underlyings – Australia: S&P ASX 200 / Europe: Euro Stoxx 50 / Japan: Nikkei 225 / US: S&P 500
Autocall Trigger: 100% of initial level
Investment Term: 6 years
Capital Protection Barrier: 50% Strike with Geared Put (at maturity)
Trades by: 21 June 2023
Enhanced Defensive Barrier… what is it..? Click here for more information
Barclays 3 Year Triple Index Fixed Income – GBP 6.40%pa
This income based note will pay a fixed (guaranteed*) coupon on the quarterly payment dates until maturity, irrespective of the performance of the underlying indices. At the final observation date, if the Underlyings are at or above the Capital Protection Barrier, then full capital is returned.
Issuer: Barclays Bank PLC
Guarantor: Barclays Bank PLC (A1 / A / A+)
Underlying: UK: FTSE 100 / US: S&P 500 / Sweden: OMX 30
Term: 3 years
Guaranteed* Income Coupon: 6.40%pa (GBP) *dependant on the usual counterparty risk
Capital Protection Barrier: 65% final level of initial level
Closing date: 21 June 2023
Natixis 3 Year Triple Index Fixed Income – USD 6.30%pa
This income based note will pay a fixed (guaranteed*) coupon on the quarterly payment dates until maturity, irrespective of the performance of the underlying indices. At the final observation date, if the Underlyings are at or above the Capital Protection Barrier, then full capital is returned.
Underlying: UK: FTSE 100 / US: S&P 500 / Sweden: OMX 30
Term: 3 years
Guaranteed* Income Coupon: 6.30%pa (GBP) *dependant on the usual counterparty risk
Capital Protection Barrier: 65% final level of initial level
Closing date: 21 June 2023
Morgan Stanley 100% Capital Protected Autocall Note
USD 6.30%pa / GBP 7.20%pa
Potential coupon of up to 7.20% for each year held if the Underlying indices are above their initial strike level on any semi-annual Observation Date from year 3 onwards.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: S&P 500 Index, Nikkei 225 Index, Euro Stoxx 50 Index
Term: 6 years (max)
Conditional (Memory) Coupon: 6.30%pa (USD) / 7.20%pa (GBP)
Autocall Observations: Semi-annual from end of year 3
Autocall Barrier: 100%
Protection Barrier: 100% of capital returned at maturity
Closing date: 23 June 2023
Morgan Stanley Fundsmith 95% Capital Protected Note
This 6 year fixed term investment offers up to 137% participation in the quarterly averaged performance of the Fundsmith Equity Fund SICAV T EUR Acc for GBP investors.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: Fundsmith Equity Fund Sicav T EUR Acc
Term: 6 years
Investment Return: 137% of the quarterly averaged performance of the underlying fund (127.5% for USD investors)
Capital Protection : Minimum 95% of capital returned at maturity
Closing date: 30 June 2023
BBVA Classic Autocall Note #10
12.70%pa USD / 12.20%pa GBP
Potential coupon of up to 12.70%pa for each year held if the underlying assets are above their initial strike level on any semi-annual coupon 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: S&P 500 Index, Eurostoxx 50 Index, Nikkei 225 Index
Term: 6 years (max)
Conditional (Memory) Coupon: 12.70%pa (USD) / 12.20%pa (GBP)
Autocall Observations: Semi-annual from end of year 1
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 7 July 2023
Barclays S&P 500 95% Capital Protected Note
This 6 year fixed term investment offers up to 150% participation in the quarterly averaged performance of the S&P 500 Index
Issuer: Barclays Bank PLC
Guarantor: Barclays Bank PLC (A1 / A / A+)
Underlying: S&P 500 Index
Term: 6 years
Participation: 150% of the quarterly averaged performance of the S&P 500 Index
Capital Protection: Minimum of 95% of capital returned at maturity
Closing date: 7 July 2023
** 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