This week's wrap covers structured products with strike dates between August 26 and September 1, 2018. Products reviewed include a gold-linked bond from ING in Belgium, a constant maturity swap rate linked note from Credit Mutuel in France and a FTSE income plan from Citigroup in the UK. In the US, Goldman Sachs launched a 100% protected note linked to a Solactive index which tracks companies who benefit from a demographic shift towards an older population while UBS issued a reverse convertible note in Japan.

EUROPE
Two hundred and nine structured products distributed across 14 different markets struck in Europe during the week.

ING Bank issued the five-year US dollar denominated Participation Notes Gold 09/23 in Belgium. The capital protected product is linked to the evolution of the London Bullion Market Association (LMBA) Gold Price USD, the reference price for gold in the market. Entry costs of maximum 3.5% are included in the issue price and annual running costs of 0.25% apply.

CM CIC Market Solutions is distributing Tarn Objectif 6.50% Septembre 2028 in France. The 10-year steepener offers a fixed coupon of 1.65% pa. for the first three years of investment. The following years the annual coupon is equal to the difference between the 20-year CMS and the 5-year CMS. However, once the sum of the accumulated coupons reaches or exceeds the target of 6.50%, the product will mature early, at 100%.

In the UK, Mariana Capital Markets teamed up with Citigroup Global Markets for the launch of FTSE Defensive Income Kick Out Plan. The 10-year product, which is eligible, among other, as a direct investment, Isa transfer, and for pensions, companies, charities and trusts, is listed on the Irish Stock Exchange and offers a potential income of 1.53% for each quarter the plan runs. James Brearley & Sons Limited acts as the plan-administrator and custodian and Mariana receives a fee, which is not expected to exceed 1.85%, for arranging the product.

Erste Group Bank is marketing Smart Invest Garant VI 2018-2026 in Austria. The product is listed in Vienna and linked to the Solactive Erste Multi Asset Index 35 VC, which aims to achieve an annualised volatility of less than or equal to 7%. An issue charge of up to 3% of the aggregate principal amount applies.

NORTH AMERICA
Eight hundred and forty-one structured products, split between Canada (41) and the US (800), had strike dates in North America.

NBC is distributing series 10F of its Global Equity Markets GIC in Canada. The capital protected deposit participates 110% in the growth of a basket composed of two indices (Eurostoxx 50, S&P/TSX Composite Low Volatility Index) and two exchange-traded funds (BMO MSCI EAFE Hedged to CAD Index ETF, iShares Core S&P 500 ETF CAD - Hedged).

JP Morgan issued Index-Linked Notes (48130UAG0) which sold US$754,000 in the US. The capital protected securities participate 330% in the upside performance of the S&P Economic Cycle Factor Rotator Index, which tracks the return of a notional dynamic portfolio consisting of four excess price return US equity indices and the S&P 5-year US Treasury Note Futures ER Index. The estimated value of the notes was set at US$901.30 per US$1,000 principal amount. JP Morgan Securities, acting as agent for JP Morgan Financial, will pay a selling commission of up to 4.275% to other dealers.

Also in the US, Goldman Sachs launched Autocallable (40055QS29), a seven-year fully protected note linked to the Solactive Motif Capital Aging of America 7 ER Index. The index tracks US listed companies that may benefit from the long-term demographic shift towards an older population in the US because they have revenues from developing therapies for medical conditions that disproportionately affect senior citizens or providing senior housing facilities, or medicare insurance. The product sold US$422,000 and an underwriting discount of 4.85% of the face amount applies.

MIDDLE EAST & AFRICA
Seven structured products were launched in the Mea region. They were all targeted at investors in South Africa.

Standard Bank issued the Capital Accumulator 3+ in South Africa. The deposit returns 130% of the nominal invested if the FTSE/JSE Africa Top 40 is at or above its initial level at maturity.

ASIA PACIFIC
Two hundred and eighty-five structured products struck in the Asia-Pacific region during the week. The products were split across six databases: Australia (five), China (15), Japan (33), Singapore (two), South Korea (200) and Taiwan (30).

Sequoia launched Berkshire Series 44 in Australia. The three-year deferred purchase agreement is linked to the performance of Berkshire Hathaway Class B Shares. Investors are required to borrow 100% of the investment amount from the loan provider to fund the investment, at an interest rate of 5.95% pa.

HSBC Bank issued the two-year CNY Note S35 in China. The product is wrapped as a wealth management scheme and offers 100% capital return plus 100% of the average performance of SPDR Gold Shares ETF providing the underlying fund does not close above 120% of its initial level during the investment period. Otherwise, the product offers 106.4% capital return.

Imamura Securities collaborated with UBS for the launch of EB M2020190828 in Japan. The one-year product, which sold JPY1.28bn (US$11.5m) at inception, is linked to the share of Daifuku and offers a fixed coupon of 6% pa., paid quarterly.

In Singapore, United Overseas Bank is marketing UOB Principal Guaranteed Structured Deposit 2018 Series 12. The product has a term of 12-years and pays a fixed coupon of 2.2% pa. At maturity, an additional coupon of 3% is paid if the shares of Ascendas Real Estate Investment Trust, CapitaLand, DBS, Keppel Corporation and Oversea-Chinese Banking close at or above their strike levels.

Yuanta Securities is distributing My DLS 373 in South Korea. The product has a duration of just three months and is linked to the credit risk of Macquarie Bank. If Macquarie remains solvent the product offers 100% capital return plus a fixed coupon of 2.75% pa.

Taishin Bank teamed up with Credit Suisse in Taiwan for 12-month Autocallable Note 152000001294. The unlisted registered note is denominated in US dollars and is targeted at private banking investors.