Standard Bank Offshore Group is launching the latest in its series of award winning structured products which are designed to return the initial capital invested and offer potential for returns linked to market indexes. The products are offered for subscription until 15 December 2009, subject to availability.
Adam Hunt, Head of HNW Clients, commented: “These products are aimed at investors who want peace of mind in an uncertain market, together with the opportunity to take part in a recovery in markets over the medium term.”
Quantum PLUS is a 5 year fixed term Standard Bank deposit offering, available in Sterling, US dollar or Euro. It aims to provide depositors with three highly valued benefits in today’s economic environment:
• Competitive levels of regular income in a low interest rate environment
• Designed to return capital at maturity providing more security in volatile markets
• Regular access to liquidity for half of the initial deposit amount
The Quantum PLUS offering achieves these benefits by splitting initial capital sum equally between two deposits:
• The Quantum portion is a deposit which can be redeemed fully or partially after the first year or on any quarterly anniversary thereafter. This portion pays an income of 4% at the end of the first year followed by a premium of 3% over three month Libor on each quarterly anniversary for the remaining four years of the term
• The PLUS portion is designed to return 75% of potential stock market growth in addition to returning capital in full at maturity after five years
Minimum deposit amounts are £10,000, US$20,000 or €15,000. Unicom is offered as a tradeable security, backed by an AA Standard & Poor’s rated issuer. The security’s payout is linked to the S&P GSCI Crude Oil Index ER. Investors can choose between a Sterling, US dollar or Euro version with minimum investment amounts of £50,000, US$75,000 and €50,000 respectively. The Euro and Sterling versions offer a nominal return of 11%, and the US dollar version 14%, for each year of the product’s term, paid at maturity. The maximum term for Unicom is five years, but the product could mature early on any of its anniversaries, depending on index performance. For Unicom to mature early, the oil index will have to close at or above its start level on any of the product’s anniversaries. The potential minimum term is one year after which the investor can expect an 11% return on their Sterling and Euro investments, or 14% for the US dollar version. If Unicom lasts its full five year term, the product aims to pay a return of 55% to Sterling and Euro investors, or 70% for US dollar investors, along with original capital invested. Investors’ capital is protected at maturity so long as the oil index doesn’t fall by 50% or more from its start level, which will be recorded on 18 December2009.
Adam Hunt added: “With much uncertainty about where markets are heading and whether the equity market lows in March marked the turning point, our products aim to offer security, income and returns linked to potential market growth. Our Quantum PLUS offering gives depositors the reassurance that the product is designed to return the capital invested at maturity without detracting from the ability to accumulate generous income over its term. Unicom is for those investors who have a greater risk appetite and wish to convert relatively flat oil index growth over the medium term into nominal annual returns of 11% or 14%, depending on the investment currency. Standard Bank is extremely pleased to be able to offer investors a clear and transparent choice based on their own investment needs and risk appetite.”