Cajastur savings bank has returned to the Spanish market with its first a structured deposit for almost two years.
Cajastur Extra Dólar is a growth product linked to the exchange rate between the euro and the US dollar. It returns capital at maturity plus an 80% participation in the strengthening of the US dollar against the euro, or a 25% participation in the strengthening of the euro against the US dollar.
“Considering the current turmoil in the capital markets we opted for an easy-to-understand product offering a potential return based on safety and a good prospect for returns at uncertain times. We offer the guarantee for the fixed income investment and an underlying easy to understand for almost everybody, which also offers a good prospect for appreciation,” said Juan Jose de la Roza, head of Cajastur’s asset management division.
Structured deposits are a very important alternative at a time of much needed liquidity, continues de la Roza, “because of their ability to combine safety features and exposure to an underlying at a time when the markets make the choice of financial assets difficult for retail investors looking for something more than a traditional fixed income deposit.”
The bank will continue to launch funds despite difficult conditions in the local funds market. Cajastur recently sold capital-guaranteed funds Selección Dividendo II (which raised €18m) and Cajastur Estrategias Garantizado (whose sales volume has yet to be published).
The last structured deposit from Cajastur, which closed in December 2006, was linked to the DJEurostoxx50. Cajastur Extra Dólar will be available to retail investors until 31 July. The regional savings bank confirmed that its target volume is €10m.
