BTG Pactual has registered and launched its seventh fund for the Brazilian structured products market.
The one-year Capital Protegido VII linked to the Ibovespa is the first retail structured fund to be launched in Brazil this year.
At maturity, the product offers a minimum capital return of 100%, plus 150% of the absolute fall or 50% of any rise in the index. However, if the index rises above 30% at any time then no coupon is awarded. Also, if at any time the product falls below 30% from its initial level, the product offers a fixed capital return of 120% at maturity plus 50% of any rise in the underlying.
Finally, if both positive and negative barriers are breached, at maturity the product pays out 120% of capital.
Currently, BTG Pactual has marketed five funds over the past two years, generating $58m in sales. The Capital Protegido VII is the third fund to be launched in a series of bull bear funds and is estimated to sell $3m.
Year to date the Brazilian structured product market has seen three funds, which have generated a total of $101m in sales. There is one fund still open for investment until 28 February, Santander Capital Protegido Van Gogh 10.
This product will be available shortly in Recent Additions (Brazil).