Poland's Polbank EFG has hit the jackpot with Zyskowny Szlak, a one-year reverse convertible structure linked to a basket of three indices comprising the Eurostoxx50, S&P500 and Wig20, which exceeded the distributor's expectation when it raised around PLN187m (€45m).
The assets raised during the one-month subscription period have placed the product at the top of the best sellers league in Poland this year.
Polbank EFG's personal banking and deposit products manager, Tomasz Sobociński (pictured), told SRP that previously the bank had aimed at raising PLN100m (€25m) in assets for each tranche, but that "precise timing" has achieved almost double the expected outcome of this plan.
"This is the third tranche of the series and the two previous tranches have successfully matured, paying all coupons on top of the initial capital invested," he said
The product's predecessor, Inwestycja Podwójny Zysk 2, matured in September paying 2,579 investors their full initial capital alongside two yearly coupons of 9% paid over the course of the investment. This issue, marketed in 2010, raised PLN97m (€24m).
The current issue offers a capital return of 100% alongside a fixed coupon of 8.5%, if at maturity all three underlying indices are at least 60% above their strike levels. Otherwise, the capital is at risk 1:1 with the fall in the worst-performing index over the investment period.
"Investors are aware of the risks involved and the fund fully complies with Mifid requirements," added Sobociński.
According to SRP data, the sales of non-fully protected product this year now stands at PLN490m (€118m) and its share is slightly higher (9%) than last year (6%).