SG launched two new structures earlier this year called Sapphire and Emerald, marketing them as the ‘gemstone’ range. Unlike SG’s previous products, Sapphire does not come with a capital guarantee. Instead, investors are offered the possibility of gaining at maturity additional leverage on their portfolio.
“Instead of saying, OK, you get a capital guarantee at the end, we say forget the capital guarantee and if markets go down we give you more and more equity,” said Debreu. But he admitted a capital guarantee is a key selling point for retail structures.
This is reflected in sales of Emerald, which does come with a full capital guarantee. Debreu said he has sold between €1.5 billion and €2 billion Emerald products since their launch in March.