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 **
85-60 Memory Income Autocall
8.50%pa (USD) / 7.75%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: 8.50%pa (4.25% Semi-Annually) gross
GBP: 7.75%pa (3.875% Semi-Annually) gross
Underlying indices: Italy: FTSE MIB Index / Europe: Euro Stoxx 50 / Japan: Nikkei 225 / US: S&P 500
Autocall Trigger: 100% of initial level
Autocall Observation: Semi-annual from end of year 1
Income Trigger: 85% of initial level
Income Observation: Semi-annual
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 17 July 2024
4 Year Mega Tech Fixed Income 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: 18 July 2024
4 Year Mega Tech Quarterly Phoenix Autocall with Memory
22.50%pa (USD) / 20.00%pa (GBP)
This Note offers a potential coupon of up to 22.50%pa (5.625% 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 6, 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: 22.50%pa USD (5.625% paid quarterly)
Conditional Coupon: 20.00%pa USD (5.000% paid quarterly)
Investment Term: 4 years (max)
Income Coupon Trigger: 90% of initial level on least performing stock
Income Observation: Quarterly
Autocall Observation: Quarterly from month 6
Autocall Trigger: 100% of initial level
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 18 July 2024
4 Year Cash Booster – Low Hurdle Snowball
USD 19.00%pa / GBP 18.00%pa
This note offers a Cash Booster Coupon after 1 year with a guaranteed coupon of up to 19.00%, regardless of the performance of the underlying stocks. The note also has an Autocall feature where on the one-year anniversary (& then on every semi-annual observation date thereafter), if all of the underlying stocks are at or above 85% of their initial levels, the note will redeem with 100% of the invested amount returned to the client, PLUS a snowball coupon of up to 9.5% for each semi-annual period held beyond year 1.
Coupon: 19.00% USD / 18.00% GBP
Underlyings: Advanced Micro Devices Inc / Nvidia Corp / ARM Holdings Plc
Investment Term: 4 years (max)
Autocall Trigger: 85% of initial level
Autocall Observation: Semi-annual from the end of year 1
Capital Protection Barrier: 60% Final Level (European style) Barrier
Trades by: 18 July 2024
4 Year 60/60 Tech Stocks – Quarterly Phoenix Autocall with Memory
16.25%pa (USD) / 15.25%pa (GBP)
This Note offers a potential coupon of up to 16.25%pa (4.0625% paid quarterly) if all of the underlying companies are at or above 60% 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 12, 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: Apple Inc / Microsoft Corp / NVIDIA Corp / Tesla Inc
Conditional Coupon: 16.25%pa USD (4.0625% paid quarterly)
Conditional Coupon: 15.25%pa USD (3.8125% paid quarterly)
Investment Term: 4 years (max)
Income Coupon Trigger: 60% of initial level on least performing stock
Income Observation: Quarterly
Autocall Observation: Quarterly from month 12
Autocall Trigger: 100% of initial level
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 18 July 2024
100% Capital Protected Index Callable Note
8.00%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: 7.25%pa gross
GBP: 6.20%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: 18 July 2024
85 / 65 Index Phoenix Autocall with Memory
6.75%pa (USD) / 6.00%pa (GBP)
This 6 year (max) income based note has the opportunity for an early maturity from 24 months. It features a semi-annual 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: 6.75%pa (3.375% Semi-Annually) gross
GBP: 6.00%pa (3.00% 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
Income Observation: 85% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 18 July 2024
6 Year Triple Index Quarterly Snowball Autocall
14.50%pa
This growth based note has the opportunity for an early maturity from 24 months. On the 2-year anniversary and on every quarterly observation date thereafter, if all of the underlying indices are at or above 97% of their initial levels, the note will redeem (autocall) and 100% of the invested capital will be returned.
The note features a snowball quarterly coupon of 3.625% (14.50%pa) in the event of an autocall. If the autocall condition is not met, the quarterly coupon amount is accumulated for the next Autocall Observation date.
Coupon: 14.50%pa (3.625% quarterly)
Underlying indices: Euro Stoxx Banks Index / Japan: TOPIX Index / US: Nasdaq 100 Index
Autocall Trigger: 97% of initial level
Autocall Observation: Quarterly from end of year 2
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 18 July 2024
6 Year Global Markets Quarterly Autocall with Memory
7.74%pa (USD) / 7.00%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: 7.75%pa (1.9375% quarterly) gross
GBP: 7.00%pa (1.75% 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: Quarterly from end of year 2
Income Trigger: 90% of initial level
Income Observation: Quarterly
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 18 July 2024
Classic Autocall Note (#19)
11.00%pa (USD) / 10.00%pa (GBP)
This Note offers a potential coupon of up to 11.00%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 index, Nikkei 225 index, S&P 500 index
Conditional Coupon: 11.00%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: 19 July 2024
Global Markets Income Note
9.00%pa (USD) / 8.22%pa (GBP)
This Income type Note has the the potential to provide a coupon payment of up to 9.00%pa if at the semi-annual observation dates, the underlying indices are at or above 85% of their initial levels. The Note has a memory feature which means that anytime an income coupon is paid, it will also include any previously misses coupons. This is a 6 year maximum term Note, but has the opportunity to mature (auto-call) early on a semi-annual basis from the end of year 1, if all of the underlying indices are at or above 100% of their initial levels.
At the final observation date, if the underlying’s are at or above the Capital Protection Barrier (65% of initial level), then full capital is returned.
Guarantor: Morgan Stanley (A1 / A+ / A-)
Underlying indices: Nikkei 225 Index / FTSE MIB Index / Russell 2000 Index
Conditional Coupon – 9.00%pa (USD) / 8.22%pa (GBP)
Income Coupon Barrier: 85% of initial level
Income Observation: Semi-annually
Auto-call observation: Semi-annual from the end of year 1
Auto-call Barrier: 100% of initial level
Investment Term: 6 years (max)
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 19 July 2024
100% Capital Protected Autocall
8.30%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: 8.30%pa (4.15% 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: 22 July 2024
S&P 500 Capital Protected Note (135% Participation)
This capital protected growth participation product gives investors peace of mind that their invested capital will be protected, even in falling market conditions. This product takes the quarterly averaged performance of the S&P 500 Index, throughout the full six-year term, to determine the performance.
At the final observation date, should the averaged performance of the underlying index be positive, investors will receive an enhanced participation in the positive performance of 135%. For example, if the averaged performance is +40% at maturity, investors will receive a coupon of 54%, in addition to their invested capital.
Guarantor: Canadian Imperial Bank of Commerce (Aa2 / AA / A+)
Underlying: S&P 500 Index (SPX)
Term: 6 years
Participation rate: 135% 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: 23 July 2024
Prime Income Note (#15)
7.60%pa (USD) / 6.60%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) / 6.60%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: 26 July 2024
3 Year Triple Index Fixed Income
6.70%pa (USD)
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: 6.70%pa (1.675% 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: 31 July 2024
3 Year Triple Index Fixed Income
6.23%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.
GBP: 6.23%pa (1.5575% paid quarterly) gross
Underlying indices: Japan: Nikkei 225 Index / Europe: Euro Stoxx 50 Index / Sweden: OMX Index
Investment Term: 3 years
Capital Protection Barrier: 65% Final Level (European Style) Barrier
Trades by: 31 July 2024
Semi-Annual Classic Autocall
12.80%pa (USD) / 11.00%pa (GBP)
This Note has the opportunity for an early maturity from 12 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: 12.80%pa (6.40% Semi-annually) gross
GBP: 11.00%pa (5.50% Semi-annually) gross
Underlying indices: Switzerland: SMI / Euro Stoxx 50 index, Nikkei 225 index, S&P 500 index
Autocall Trigger: 100% of initial level
Autocall Observation: Semi-annual from end of year 1
Investment Term: 6 years (max)
Capital Protection Barrier: 60% Final Level (European Style) Barrier
Trades by: 1 August 2024
S&P 500 – 100% Capital Protected Note
This capital protected growth participation product gives investors peace of mind that their invested capital will be protected, even in falling market conditions. This product takes the quarterly averaged performance of the S&P 500 Index, throughout the full six-year term, to determine the performance.
At the final observation date, should the averaged performance of the underlying index be positive, investors will receive an enhanced participation in the positive performance of 130%. For example, if the averaged performance is +40% at maturity, investors will receive a coupon of 52%, in addition to their invested capital.
Guarantor: BNP Paribas (Aa3 / A+ / 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: 2 August 2024
95% Capital Protected on Fundsmith Equity Fund
This capital protected growth participation product offers up to 157% of the participation rate of the quarterly averaged performance of the Fundsmith Equity Fund SICAV T Euro Acc
At the final observation date, should the averaged performance of the underlying fund be positive, investors will receive an enhanced participation in the positive performance of 157%. For example, if the averaged performance is +50% at maturity, investors will receive a a total return of 73.50% on their invested amount.
There is a Capital Protection feature which will provide a minimum of 95% of your invested capital returned if the averaged performance is 0% or negative.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: Fundsmith Equity Fund SICAV T EUR Acc
Term: 6 years
Participation rate: 157% of the quarterly averaged performance of the above fund
Capital Protection: Minimum of 95% of capital returned at maturity **
** unless a Credit Event occurs with the issuer
Closing date: 2 August 2024
95% Capital Protected Autocall Note
8.00%pa (USD) / 7.25%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 end of year 3 onwards.
Guarantor: Goldman Sachs Group, Inc (A2 / BBB+ / A)
Underlying: S&P 500 Index, Nikkei 225 Index, Euro Stoxx 50 Index
Term: 6 years (max)
Conditional Coupon: 8.25%pa (USD) / 7.40%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: 2 August 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 6.00% 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: 5 August 2024
60 – 60 Memory Income Knock – Out
15.00%pa
This income based Note has the opportunity for an early maturity from 6 months. It features a quarterly coupon of USD: 3.75% which is payable when all of the underlying assets are at or above 60% of their initial levels at any of the quarterly observation dates. The memory feature means that whenever an income payment is made, it will include any payments that have previously been missed.
If on any of the quarterly observation dates (including the final observation date), starting at 6 months, any of the underlying’s are at or above their Knock-Out Trigger level, the underlying asset will ‘Knock – Out’. Once all of the underlying assets have been knocked out, the investment will autocall.
USD: 15.00%pa (3.75% quarterly) gross
Underlyings: Amazon Inc / Microsoft Corp / Tesla Inc / Nvidia Corp
Investment Term: 4 years (max)
Income Trigger: 60% of initial levels
Income Observation: Quarterly
Knock Out Trigger level: 95% of initial level
Knock Out Observation: Quarterly from end of month 6
Capital Protection Barrier: 60% Final Level (European style) Barrier
Trades by: 13 August 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