Royal Bank of Canada (RBC) is starting the week with an extra $19.7m to potentially re-invest into other structured products as clients in the US received the maximum possible payout of 115.57% after a fourteen-month investment period, following the maturity of its Accelerated Return Notes.
The product promised to pay back the initial investment at the end of the fourteen month investment term, in addition to a three times leverage exposure to the S&P500, capped at 115.57% including averaging. The product was a capital-at-risk structure.
The initial index level closed at 1269.75 and the final index level was taken on each of the five days prior to maturity and averaged, resulting in a 1403.26 level - a growth of approximately 10.5%. However, applying the participation factor resulted in a growth of 31.5%, which triggered the product's cap on the upside.
This issue of the RBC Accelerated Return Notes slips into the top 35 best-selling products by the bank in this period.
This product appears in the US database.