Product roundup - November

 

Insch Capital in Switzerland has teamed up with Liechtensteinische Landesbank (Switzerland) and Prometeo Investment Services to launch Goldilocks, a hybrid capital-protected gold and currency note. Eighty percent of the capital is allocated to a portfolio of gold notes linked to the performance of a gold spot-price index, with the remainder allocated to an actively managed currency segment with four times leverage. The gold note allocation is fully capital protected subject to issuer credit risk (A+ or above). A 50% trailing stop-loss system ensures that a maximum of 10% exposure will be taken on the currency component, adding up to capital protection of 90%. The notes will redeem in five years, but Prometeo Investment Services will provide daily liquidity. The minimum investment is $200,000.

 

Goldman Sachs has launched a note linked to the price of gold and silver for US investors. The note lasts six years and participates 100% in the performance of the SPDR Gold Trust (a physically backed exchange-traded fund) and the iShares Silver Trust, subject to a cap of 60–65%, which is determined on the trade date. The gold allocation in the note is weighted at 75%, and silver at 25%. Capital is 100% protected.

Jubilee Financial Products has launched the Early Redemption Plan 4, linked to the Hang Seng China Enterprises Index. The autocallable product will mature and pay a return of 11.25% on its first anniversary if the index is equal to or higher than its initial level, accumulating an additional coupon of 11.25% for each year it operates. The minimum investment is £15,000, and the counterparty is Citi. If the index drops below 50% during the product’s life and fails to recover by maturity, investor capital will be lost 1:1.

Société Générale has launched a FTSE 100 linked Twin Win product on the London Stock Exchange. The three-year product offers unlimited upside and will pay a positive return on any falls subject to a a floor of 3,300. If the index falls below that level, 1:1 negative downside participation will be unlimited.

Investec has launched its twelfth collection of structured plans in the UK, which includes two FTSE-linked deposits. The firm has now partnered with Lloyds TSB, which is acting as an additional deposit-taker.