In this week's product wrap we are looking at the performances of a sample of the products which matured across Europe, North and Latin America, Asia-Pacific and Middle East and Africa in the month August.

EUROPE

A total of 1,798 structured products across 22 European countries reached their maturity in August, according to SRP data.

KBC Life MI Safety Booster 3 - Capital return 167.6% / 11.8% p.a.
This five-year Class 23 product was issued by KBC in Belgium and collected sales of €32.2m at inception. The product was an investment fund linked to the unit-linked life insurance product KBC-Life Multinvest. The return of the product was determined by the performance of a basket of 20 blue-chip shares. The product was issued via Arcade Finance, the KBC special purpose vehicle.

Swedbank Dynamic Deposit American Equities Trio 2 - Capital return 100% / 0% p.a.
Swedbank distributed this one-year structured deposit to retail investors in Latvia. The product was linked to the performance of three shares of US companies (AT&T, Pfizer, General Electric) and promised to pay a 0.45% coupon at maturity, providing each share was at or above 105% of its initial level. However, AT&T decreased by 7.37%, Pfizer decreased by 3.49%, and General Electric decreased by 21.57% which meant that the product returned 100% of the nominal invested with no additional coupon. This product was also available in a risk premium version, with an issue price of 101% and a conditional coupon of 3.70%, which also returned 100% of the nominal invested.

ABN Amro Wereld Garantie Note July 2010-2017 - Capital return 162% / 7.1% p.a.
The seven year-note, which was distributed in the Netherlands by ABN Amro and issued via Royal Bank of Scotland, was linked to the performance of a weighted basket comprising five indices (45% S&P 500, 30% Eurostoxx 50, 10% Nikkei 225, 9.5% MSCI Emerging Markets, 5.5% MSCI Pacific ex Japan). At maturity, the capital protected product paid investors the maximum possible return. In August 2014 the product was transferred to BNP Paribas when the French bank took over the market-making activities of the majority of RBS's investment products in the Netherlands.

Mangold Fondkommission Twin-Win Sprinter Sverige 6 - Capital return 165.4% / 10.5% p.a.
Morgan Stanley was the issuing party behind this five-year certificate which was distributed in Sweden by Mangold. The product, which was listed on the London Stock Exchange, sold SEK15.8m (€1.7m) during the subscription period and was linked to the OMX Stockholm 30.

NORTH AMERICA

The number of structured products that matured in North America stood at 901 during August. Of these, 838 were originally sold in the US market while the remaining 78 products were available in Canada.

Morgan Stanley Jump Securities - Eurostoxx50 (61755S529) - Capital return 142% / 7.26% p.a.
These unlisted registered notes had a term of five-years and were available to investors in the United States. The product sold $33.60m in the US and the commission was set at 3%. The Eurostoxx 50 - the underlying index for the product - increased by 30% during the investment term, from 2,635.93 points at inception (August 31, 2012) to 3,421.03 points at maturity. However, since the product promised a capital return of 100%, plus the greater between 42% or 100% of the rise in the index (providing the final level of the Eurostoxx 50 was not below 50% of its initial level) investors received 100% capital return plus an additional coupon of 42%.

Scotiabank S&P TSX60 Principal at Risk Booster Buffer Notes S1 - Capital return 127.8% / 5% p.a.
These five-year securities were offered to Canadian retail investors by Scotiabank. The product was linked to the S&P/TSX 60, a market cap weighted index with weights adjusted for available share float which is balanced across 10 economic sectors. The Canadian benchmark index closed at 689.09 points on the start date (August 24, 2012) and increased by 27.8% during the investment period. Since the index performance was positive, but higher than 125% of its initial level, the product offered a return equal to 100% of the performance of the index at maturity.

LATIN AMERICA

Four hundred and forty structured products matured in the Latam region during August. They included 124 products in Brazil, two products in Chile, and 314 products in Mexico.

Banchile Fondo Mutuo Estructurado Europa Desarrollada Nivel 100 - Capital return 112.6% / 6.2% p.a.
This capital protected fund (fondo mutuo) was available to retail investors in Chile and had a term of two-years. The product was linked to the Eurostoxx 50 and sold CLP7.7bn (US$12.3m) at inception. The underlying index, which closed at 3,073.39 points on the strike date, gained 12.6% during the investment period. An annual management charge of 1.2% applied to the fund.

Santander Brasil Ibovespa Participacao Alta - Capital return 117.1% / 17.18 p.a.
Santander launched this bank certificate of deposit (Certificado de Operações Estruturadas) one year ago in Brazil. The capital protected product was linked to the local Ibovespa Brasil Index and promised at maturity a return equal to the performance of the index, capped at a maximum of 18%. Since the level of the index increased by 17.13% since the strike date (August 23, 2016), the capital return was 117.13%.

ASIA PACIFIC

There were 2,172 structured products across 10 different jurisdictions that reached their maturity in the Apac region, including products in Australia (eight), China (52), Hong Kong (39), India (31), Japan (63), Malaysia (11), Singapore (seven), South Korea (1,364), Taiwan (79) and Thailand (518).

HSBC 6个月看跌型人民币产品17028/6M CNY Note 17028 - Capital return 103.65% / 7.5% p.a.
This product was wrapped as a wealth management scheme and distributed by HSBC to investors in China. The product, which had a short-term six-months, was linked to the Stoxx Europe 600 Oil & Gas index and had a bear pay-out structure. Since the performance of the index had decreased by more than 3% compared to its initial level, from 306.27 points on February 2 to 295.13 points on August 7, 2017, the product returned 100% of the nominal invested plus a coupon of 7.5% per annum.

Shinsei Securitiesノックイン債 / PowerBond Nikkei225 1608 - Capital return 102.1% / 2.1% p.a.
This income product was distributed by Shinsei Securities in Japan. The product collected sales of JPY2.85bn (US$25.8m) at inception and was issued via Kommunalbanken while Nomura acted as the derivatives counterpary. The product offered a 2.1% p.a. coupon, paid quarterly, throughout the investment period. At maturity the product returned 100% of the nominal invested since the underlying index, the Nikkei 225, did not fall below 69% of its initial level at any time during the investment period.

MIDDLE EAST AND AFRICA

Twenty structured products matured in the Mea region during the past month. Of these, 15 products were originally issued in Israel and five products were targeted at investors in South Africa.

Standard Bank Capital Accumulator 40m+ - Capital return 107.7% / 34% p.a.
The three-month structured deposit was available to retail investors in South Africa. The product was linked to the local FTSE/JSE South Africa Top 40 Index. At maturity the underlying was above its initial level and the product returned the capital invested plus a coupon of 34% p.a.