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**
Morgan Stanley Classics Note 5 – 8.76%pa (7.36%pa GBP)
Potential coupon of 8.76% for each year held if the underlyings are above their initial strike level on any quarterly observation date from end of quarter 3 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)
Memory Coupon: USD 8.76% p.a. / GBP 7.36%p.a.
Autocall Observations: Quarterly from end of quarter 3 onwards
Autocall Barrier: 100%
Protection Barrier: 70%
Closing date: 20 November 2020
Natixis Monthly Bonus Note 2
16.08%p.a. (13.08%p.a. for GBP)
Potential coupon of 16.08%pa (13.08%pa GBP) for each year held if the underlyings are above their initial strike level on any monthly observation date from month six onwards.
Issuer: Natixis (A1 / A+ / A+)
Underlying: S&P ASX 200 Index, FTSE MIB Index, HSCEI Index, MSCI Taiwan Index
Term: 6 years (max)
Memory Coupon: 16.08%pa USD / 13.08%pa GBP
Autocall Observations: Monthly from month 6
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 23 October 2020
BBV A Global Income Note 3
7.00%p.a. (5.70%p.a. for GBP)
Potential coupon of 7.00%pa (5.70%pa for GBP) for each year held if the underlyings are above 80% of their initial strike level on any quarterly observation date from year 1 onwards.
Issuer: BBV A (A3 / A- / A)
Underlying: Nasdaq 100 Stock Index, S&P TSX 60 Index, HSCEI Index, Dow Jones Industrial Average Index
Term: 6 years (max)
Memory Coupon: USD 7.00%p.a. / GBP: 5.70% p.a.
Coupon Observation: Quarterly at 80% of initial strike level
Autocall Observation: Quarterly from year 1
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 23 October 2020
** 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