London and Paris based structured product firm Hilbert Investment Solutions has launched the second structured product in its income series called ‘UK Conditional Quarterly Autocall Issue 2’. The product designed for the UK retail market is listed on the Irish Stock Exchange and invests in the FTSE 100 index – it aims to pay investors 1.75% on a quarterly basis provided that the closing level of the FTSE 100 is at least equal to 80% of its opening level on any quarterly measurement date.
UK Conditional Quarterly Autocall Issue 2 has the capability to mature early provided that the closing level of the FTSE 100 index becomes at least equal to 112% of its opening level on any quarterly measurement date from 20th December 2018. If this happens, investors can expect to receive the income payment for that quarter and the repayment of their original investment in full at this point.
The counterparty for the product is Citigroup Global Markets Funding Luxembourg S.C.A. Hilbert’s founder Steve Lamarque said “I’m really pleased to announce the launch of ‘UK Conditional Quarterly Autocall Issue 2’ the second structured product in our income series. This product is well suited for those who are seeking regular income payments and given the success of our first issue I am confident that this product will be popular with our clients in the UK.”
Notes to editors
1. About Hilbert Investment Solutions
The firm was established in 2012 by former Old Mutual head of structured products Steve Lamarque to specialise in cross asset, structured solutions covering equities, rates and commodities. Hilbert specialises in innovative, forward-looking investment solutions, often tailored to individual client needs. The team can design structures to meet a specific performance target, match a particular appetite for risk or satisfy environmental or social responsibility expectations. Hilbert believes that delivery is just as important as structuring, with ongoing client support including high quality research which enables distributers to explain the rationale behind the tools and ideas and how they fit within investment portfolios. In 2016, Hilbert joined the UK Structured Products Association and aligned itself to the UKSPA Code, utilising its product risk rating. 2. About UK Conditional Quarterly Autocall – Issue 2
A. The maximum investment term is up to ten years and is linked to the performance of the FTSE 100 index. B. The counterparty credit rating is A+ and the minimum investment amount is £5,000.00 C. UK Conditional Quarterly Autocall – Issue 2 is administrated by Hargreave Hale Limited D. The UKSPA gave this product a rating of C, an exact risk score of 5.36 and a volatility rating of 11.79.
The investor will receive an income payment of 1.75% for each quarterly measurement date that the closing level of the FTSE 100 Index is at least equal to 80% of its opening level. The income is paid gross. If the closing level of the FTSE 100 Index is below 80% of its opening level on a quarterly measurement date, no income will be paid for that quarter. Once the plan has matured, no further income will be paid.
The plan will mature early if the closing level of the FTSE 100 Index is at least equal to 110% of its opening level on any quarterly measurement date from 12th November 2018. If this happens, the investor will receive the income payment for that quarter, and the repayment of their original investment in full at this point.
If the final level of the FTSE 100 Index is more than 40% below the opening level of the FTSE 100 index, the investor will receive back less than their original investment. The amount of investment they receive back will be reduced by the same percentage amount that the FTSE 100 Index has fallen in value from the start date.
Hilbert will charge a one-off distribution fee of up to 1.5% to cover its costs for marketing the Plan. No part of this fee will be used to pay a financial adviser.