Investment Length | 6 years |
---|---|
Product currency | GBP |
Product type | Protected Growth |
Vehicle | Plan |
Capital | At risk
|
Aim | Growth |
Asset style | Single |
Opening date | 12 Jun 2017 |
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Closing date | 14 Jul 2017 |
Strike date | 21 Jul 2017 |
Final market date | 21 Jul 2023 |
Report published | 12 Jun 2017 |
Underlying Asset | FTSE 100 Index |
---|---|
Counterparty | Multiple Counterparties |
Issuer credit rating | Aviva plc (S&P A-), Barclays Bank plc (S&P A-), Lloyds Bank plc (S&P A), HSBC Bank plc (S&P AA-) |
Credit rating band | A band |
Tax wrapper(s) | Direct investment, ISA, ISA transfer, SIPP/SSAS, Trustees of a trust, Corporate/Commercial, Charities, Direct Investment (for Joint Accounts) |
Min/Max Investment | Minimum: £10,000. The overall ISA limit is £20,000 for the 2017/2018 tax year |
Potential Returns:
This product is classified by FVC as a 'Protected Growth'.This product pays the investor returns equal to 5 times any growth in the FTSE 100, measured from a reference level of 90% of the strike level, subject to a cap of 155.5% on total returns. For example, if the final underlying asset is 4 percentage points higher than this reference level, i.e. the FTSE 100 finishes at 94% of its strike level, the investor will be paid a return of 20% plus the initial investment. Returns are capped at 55.5% and will be achieved if the final level of the FTSE 100 is 11.1% above the reference level, which is 101.1% of its strike level. If the underlying asset finishes above 101.1% of its strike level, the investor will be paid the maximum return of 55.5% plus their initial investment.
Capital Repayment:
The product has a European barrier. This means that the barrier is observed at maturity only. The barrier is set at 60% of the strike level and will be breached if the final level of the underlying asset is below 60% of the strike level. If the FTSE 100 finishes below the European barrier of 60% on the final day of the investment some capital is lost.If the underlying asset finishes below the 60% barrier, the investor will be paid an amount equal to the final level of the underlying asset, with respect to its strike level. For example, if the final level of the FTSE 100 is 40% of its strike level and therefore the barrier is breached, the investor will be returned 40% of their capital investment.
Additional Information:
The direct credit risk of this product is not solely dependent on the solvency of Societe Generale, but is diversified across the following four UK institutions: Aviva plc, Barclays Bank plc, Lloyds Bank plc and HSBC Bank plc. For precise details of the credit exposure of this product, please refer to the brochure.
If Societe Generale were to become insolvent, there is a collateralisation mechanism in this product designed to return investors an amount equal to the value of the plan at the time of a Societe Generale credit event. The collateral is maintained daily, and will consist of a pool of assets consisting of government bonds, corporate bonds and/or shares which are held with an independent custodian; The Bank Of New York Mellon, (Luxembourg) S.A. The amount of collateral is dependent on the value of the plan and may be less than the initial investment.
Figure 1 : Statistics
This product | All products | All At risk | |
---|---|---|---|
Overall score | 6.16 | 7.28 | 7.24 |
Price score | 3.89 | 7.76 | 7.74 |
Return score | 8.43 | 6.81 | 6.75 |
Riskmap (0-10 scale) | 4.99 | 2.54 | 2.97 |
Market riskmap | 4.65 | 2.32 | 2.77 |
Credit riskmap | 0.34 | 0.22 | 0.20 |
Maturity | 6.00 | 5.93 | 6.29 |
Duration | 6.00 | 3.29 | 3.05 |
Figure 2 : Payoff chart
Figure 3 : Comparison chart
Figure 4 : Investor results summary
Result | Investment length (years) |
Average payoff (%) |
Simulated probability (%) |
Backtested frequency (%) |
---|---|---|---|---|
Maximum return | 6.00 | 155.50 | 50.04 | 81.53 |
Positive return | 6.00 | 127.43 | 8.95 | 18.43 |
Full capital return | 6.00 | 100.00 | 26.22 | 0.04 |
Capital loss | 6.00 | 47.39 | 14.79 | 0.00 |
Figure 5 : Prospects for return of capital
Outcome | Simulated probability | Backtested frequency |
---|---|---|
Return less than capital | 14.79 | 0.00 |
Return exactly capital | 26.22 | 0.04 |
Return more than capital | 58.99 | 99.96 |