Chilean BancoEstado has launched Guaranteed Double Opportunity, the first income product on the Chilean market, shortly after registering it with the local regulator. The two-year mutual fund has 95% capital protection and is linked to a basket of 12 Latin-American shares and the S&P GSCI Copper ER, a combination highly correlated with the country's economy given that Chile is the biggest copper producer in the world. The share basket is also the first exclusively Latin-American underlying in the Chilean structured products market.
The product pays an annual coupon equal to the performance of the basket, capped between 5% and 7%, indicative, for the first coupon, and between 10% and 14% for the second coupon. The final level for each basket component is calculated as the average price over the five days before the observation date.
The 12 companies in the basket are Ambev, America Movil, Banco Bradesco Brazil, Cemex, Cia Siderurgica Nacional, Cia Vale do Rio Doce, Enersis, Fomento Economico Mexicano, Itau Unibanco, Lan Airlines SA, Petroleo Brasileiro - Petrobras and Sociedad Quimica y Minera de Chile SA.
With a minimum investment amount of CLP50,000 ($90), the product was largely created for the retail market, though it is also open to institutions.
The product is open now and closes 5 November.
This product is available now in Recent Additions (Chile).