24M Capital Protection Note in the Solactive Defensive Funds Index in USD/EUR/CHF
Risk-adjusted Investment in the Solactive Defensive Funds Index
Today we present you an interesting Capital Protection Note to save your capital in case of falling markets and participate simultaneously when prices increase.
Our underlying the Solactive Defensive Funds Index (SOLDF3RC) is a dynamic managed indices with a equally weighted basket of 5 funds:
- Aberdeen Standard SICAV I - Select Euro High Yield Bond Fund (ABEEHYA LX)
- BlueBay Investment Grade Euro Aggregate Bond Fund (BBIGERE LX)
- PIMCO Global Investors Series plc - Income Fund (PINEEHA ID)
- Amiral Gestion Sextant Grand Large (AMSEGLA FP)
- Schroder ISF EURO Corporate Bond (SCHEHIA LX)
The equally weighted basket is composed of Cross-Asset-, Income- and High-Yield-Funds. Due to the Target Volatility Mechanism the leverage will be increased up to 200% when stable upward-trends are present. In times of volatility the downword participation will be reduced to less then 100%. This procedere maximises the return of the portfolio. The Target Volatility is 3% and the Sharp Ratio 2%. The Annualised Return is around 6% p.a. You'll find more informations about this underlying here: Solactive
24M CPN on Solactive Defensive Funds Index in USD
| Currency | USD | EUR | CHF | ||
| Denomination | USD 1000 | EUR 1000 | CHF 1000 | ||
| Underlying | Solactive Defensive Funds Index (SOLDF3RC) | ||||
| Maturity | 24 months | ||||
| Capital Protection | 96.5% | 95% | 94.5% | ||
| Participation | 100% | 100% | 100% | ||
| Cap | No Cap | ||||
| Strike | 100% | ||||
| Issuer | Rating A- minimum | ||||
| Issue Price | 100% | ||||
| Finders fee | up on request | ||||
Redemption at Maturity (E.g. CPN USD):
| Underlying | 130% | 110% | 90% | 50% |
| Redemption CPN | 126.5% | 106.5% | 96.5% | 96.5% |
We are happy to customize the relevant components exactly to your personal preferences. Please imagine that the indications can change day by day.
Are you interested in this topic? Please contact us and we will replicate your personal market view "tailor made" with our innovative products. We would be delighted to develop further hedging - arbitrage - or speculation opportunities for you. If you have already exact ideas of your favourite product we'll generate you the best conditions from more than 25 issuers (Best-Execution).
Text und analysis by Florian Franz
Partner at Carat Solutions AG
Please find the chart with the development of the relevant underlyings: Link Chart