29/05/2024

Taking a look at a host of structured products that have been on offer this month from some of the active providers in the sector, it is clear to see a broad range of different structures that investors’ can choose from based on their specific objectives and risk appetites.

Arcus Partners – 6Y UK Defensive Growth Deposit Plan (RBC22)

A 6-year deposit plan from Royal Bank of Canada offers a potential 31% gross interest payment provided the FTSE 100 closes at or above 80% of its Initial Index Level. Over the term the FTSE can fall up to 20% and investors’ will still receive, effectively, over 5.16% gross interest for each year. If the FTSE is to fall by more than 20% at the end of term, investors will still receive an interest payment of 15% along with their original capital.

hop investing – UK Annual 100 Kick Out Plan

A maximum 7-year capital at risk at the money autocall, backed by Canadian Imperial Bank of Commerce, features the potential to mature on any of the plan’s anniversaries from year two onwards. Early maturity will be triggered provided the FTSE 100 Index closes at a level equal to or higher than the Initial Index Level, returning invested capital in full, plus a gain of 8.50% for each year the plan has been in force.

iDAD – UK Income Deposit Plan – Issue 10

A 7-year deposit plan from Royal bank of Canada offering 6.35% annual interest payments provided the FTSE 100 closes between 80% - 120% of the initial level recorded. On each observation date, if the FTSE falls outside of this range no interest will be paid, however at the end of the term, investors’ capital will be returned in full.

Mariana – FTSE 100 Defensive Kick Out Plan

A maximum 7-year capital at risk step down autocall plan, backed by Credit Agricole, features the potential to mature on any of the plans anniversaries from the second year onwards, returning 7.50% for each year held. Early maturity will be triggered if on the second year the FTSE 100 is at or above 105% of the initial level, above initial level on years three and four, above 95% of the initial level on years five and six. Finally if no early maturity occurs and the FTSE 100 is no more than 15% lower by the final maturity date, invested capital will be returned in full in addition to a gain of 7.50% for each year.

MB Structured Investments – UK 6Y Annual Step down to 85 Kick Out Deposit Plan

A maximum 6-year deposit plan from Barclays offering 6.30% gross interest for each year held provided the FTSE 100 is at or above a reducing reference level on the respective observation dates. The deposit plan will mature early from the third year onwards provided the FTSE in year three and four is above 100% of the initial level, 95% in year five and 85% in the final year. If no early maturity occurs and the FTSE is more than 15% below the initial level, investors will receive their original capital in full.

Meteor – FTSE Daily 100 Kick Out Plan

A maximum 7-year capital at risk autocall plan, backed by BNP Paribas features potential to mature early on any day from the second year onwards, returning 7.60% p.a. Provided the FTSE 100 closes above the initial index level on any business day from the second year onwards, investors will receive their original capital back and a gain equal to the number of days since the start date, divided by 365 and multiplied by 7.60%.

Tempo Structured Products – FTSE 100 Memory interest Deposit Plan

A 6-year deposit plan from Royal Bank of Canada will pay conditional interest of 5.20% each year provided that the FTSE 100 closes at or above 98% of the initial level on each annual observation dates. This plan has a memory feature whereby if any interest is missed due to the FTSE closing below 98% of the start level, on the next observation that the FTSE closes above 98% of the initial level, any missed interest payments will be recouped and paid out. Investors’ original capital will also be returned in full at maturity.

Walker Crips – UK 95% Annual Kick-out Deposit plan (SAN010)

A maximum 5-year deposit plan from Santander offers 6.50% gross interest for each year held provided the FTSE 100 is at or above 95% of its initial level. This plan will mature early from the second year onwards provided the FTSE is no more than 5% below its initial level, regardless of the movement in the FTSE, original capital will be returned in full.

The plans above demonstrate just some of the typical investments offered by the popular providers in the sector, many of which offer a spectrum of structured products catering to different risk profiles. To see the currently available plans they have on offer, please visit our current products page here.

 

 

Structured investments put capital at risk.