Quintas Wealth Management Agri-Accumulator (tranches I and II) has matured after one year, returning a combined 40% to Irish investors. Quintas Wealth Management said that eight of the 12 structures launched over the last two years have successfully matured, paying out annualised average returns of over 20% for investors.
Agri-Accumulator (I and II) were two five-year knockout structures linked to a basket of commodity indices (S&P GSCI Sugar, S&P GSCI Wheat, S&P GSCI Cocoa, and S&P GSCI Coffee). Each of the tranches, sold in summer 2010, promised to pay a 10% return after six months of investment if the underlying basket was above its strike level on the first six-month anniversary. The underlyings of both tranches of the product failed to meet the condition on the first observation date but were above their respective strike levels on the second observation date, triggering the knockout payoff of 20%.
Quintas Wealth management is currently marketing the Protected Healthcare Bond, a four-year note linked to a basket of 15 global healthcare companies. The product offers two options with different levels of protection (90% and 100%). Each year, regardless of performance, the ten best performing stocks are each given a fixed return of 10.6% (for the 100% capital-protected option) or 17.25% (for the 90% capital-protected option). The performance of the remaining five stocks is taken unaltered; the performances are then added together and divided by the number of stocks, providing a locked-in return for that year. At maturity, the returns for each year are factored together to give the final return.
These products will be available shortly in Recent Additions (Ireland).