Santander Brasil has registered and launched its second fund for the Brazilian structured product market.
Capital Protegido Multimercado Credito Privado, linked to gold, is the first commodity-linked structured fund to be launched in Brazil this year.
At maturity, the two-year bull-bear structure offers a return based on asymmetrical barriers set at -25% and 45%. If neither barrier is breached, the product returns capital plus the absolute rise/fall of the underlying. However, if the upper barrier is breached and the final performance is positive, a lower fixed coupon is paid. If the final performance is negative, the value of the absolute fall is returned. If the negative barrier is breached at any time, the product becomes a simple bullish call. If both barriers are breached, a fixed rate is paid at maturity. The product is expected to sell BRL50.8m ($30.51m).
Santander Brasil has marketed 16 funds over the past three years, generating BRL3bn ($1.8bn) in sales. Capital Protegido Multimercado Credito Privado is the third with a range bull-bear payoff.
So far this year, the Brazilian structured product market has produced five new funds, which have generated BRL163m ($98m) in sales. Citifirst Capital Protegido Master V Fundo is open for investment until 18 March.
These products are available now in Recent Additions (Brazil).