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 1.00% Commission Rebate credit on investments made into the Structured Notes listed below **
Morgan Stanley 100% Capital Protected Prime Markets
This 6 year fixed term investment offers 100% capital protection at maturity, irrespective of how the underlying basket of indices performs. At the end of the fixed term, 145% (USD) of the un-capped growth of the basket of indices is applied to the capital invested.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: FTSE 100 Index, Nikkei 225 Index, Euro Stoxx 50 Index
Term: 6 years
Investment Return: 145% (USD) participation in the performance of the underlying basket of indices
Capital Protection : Minimum 100% of capital returned at maturity
Closing date: 12 August 2022
BBVA Quarterly Bonus Income Note – 12.8%pa (USD)
Potential coupon of up to 12.8%pa for each year held if the underlying assets are above 75% of their initial strike level on any quarterly 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, iShares China Large-Cap ETF, iShares MSCI Brazil ETF
Term: 6 years (max)
Conditional (Memory) Coupon: 12.80%pa (USD)
Autocall Observations: Quarterly from end of year 1
Autocall Barrier: 100%
Protection Barrier: 50%
Closing date: 2 September 2022
Morgan Stanley Classics Note 21
11.00%pa USD / 9.00%pa GBP
Potential coupon of up to 11.00%pa for each year held if the underlying assets are above their initial strike level on any semi-annual observation dates from end of year 1 onwards.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: FTSE 100 Index, Euro Stoxx 50 Index, Nikkei 225 Index
Term: 6 years (max)
Conditional (Memory) Coupon: USD 11.00% p.a. / GBP 9.00%p.a.
Autocall Observations: Semi-annual from end of year 1 onwards
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 2 September 2022
Morgan Stanley Prime Income Note 12
7.60%pa (USD) / 6.00%pa (GBP)
Potential coupon of up to 7.60% for each year held if the underlying assets are above 85% of their initial strike level (so have not dropped more than 15%) on any semi-annual observation date from year one onwards.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: Eurostoxx 50 Index, Nikkei 225 Index, S&P 500 Index
Term: 6 years (max)
Conditional (Memory) Coupon: 7.60%pa (USD) / 6.00%pa (GBP)
Coupon Observations: Semi-annual at 85% of initial level
Autocall Observations: Semi-annual from end of year 1
Autocall Barrier: 100%
Protection Barrier: 65%
Closing date: 2 September 2022
UBS AG – FTSE / European Banks Growth Autocall
13.00%pa (USD) / 12.00%pa (GBP)
Potential coupon of up to 13% for each year held if the underlying assets are above their initial strike level on any annual observation date from year one onwards.
Issuer: UBS AG
Guarantor: UBS AG (Aa3 / AA- / A+)
Underlying: FTSE 100 Index, Eurostoxx Banks Index
Term: 6 years (max)
Conditional (Memory) Coupon: 13.00%pa (USD) / 12.00%pa (GBP)
Autocall Observations: Annual from end of year 1
Autocall Barrier: 100%
Protection Barrier: 70%
Closing date: 9 September 2022
Morgan Stanley Fundsmith 95% Capital Protected Note
This 6 year fixed term investment offers 120% participation in the quarterly averaged performance of the Fundsmith Equity Fund SICAV T EUR Acc.
Issuer: Morgan Stanley B.V.
Guarantor: Morgan Stanley (A1 / A / A-)
Underlying: Fundsmith Equity Fund Sicav T EUR Acc
Term: 6 years
Investment Return: 120% of the quarterly averaged performance of the underlying fund
Capital Protection : Minimum 95% of capital returned at maturity
Closing date: 16 September 2022
** 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