Santander (UK) has launched the first structured product in the UK to be linked to the performance of golfer Rory McIlroy.
Santander's two-year Fixed Rate Major Isa product will pay at maturity a fixed 4.00% AER tax-free plus an additional one-off bonus of 0.10% if Irish professional golfer, Mcilroy, wins at least one of the eligible golf majors including the Masters in April 2013 and 2014; the US Open in June 2012 and 2013, the Open Championships in July 2012 and 2013, and the US PGA championships in August 2012 and 2013.
The product also includes a condition whereby if a specific golf major is cancelled or stopped, or if McIlroy does not compete in one of the specified tournaments for any reason e.g. due to illness or injury, that competition will be ineligible for the bonus. If RoryMcilroy fails to win any of the above-mentioned tournaments prior to product's maturity, no bonus will be paid.
As seen in other markets, a number of key tournaments have been linked to products as providers try to use extra features to appeal to investors. Spanish providers such as Banco Sabadell, CatalunyaCaixa and Solbank are examples of providers that have linked structured products to sporting events.
In the UK, Nationwide's attempt to pay an additional bonus through their 4 Year Football Bond launched in May 2010, failed as a result of the unsuccessful performance of England in World Cup 2010.