The Natixis Income Autocall investment product is being offered in both sterling and US dollar classes, and is available for investment nowonly until 21 Feb.
Natixis is a Paris-based bank and asset manager owned in part by the public, via the Euronext exchange, and part by Groupe Caisse d’Epargne and Banque Populaire.
“We have been working with Natixis for some time, and have been impressed by their professionalism and their depth of experience in structuring,” IDAD managing director Clive Moore said.
The Natixis product, Moore added, was designed specifically to accommodate advisers who are looking for investments for their clients that are capable of delivering a “good level of income”, at a time when interest rates and returns available through many other types of investment are low.
There is no minimum investment amount set, and it is capable of being held within offshore investment and insurance bonds.
Early return possible
Although it has a five-year term, Moor said the Income Autocall could mature after just one year, in which case "the client would get 100% of his capital back”.
“This is one of the reasons I believe it is one of the best structures the market currently offers. The chance for an investor to receive their capital early and so be able to take advantage of new opportunities is one that is very appealing.”
Moore admitted that like most investments that give investors the potential for high returns, the Income Autocall “does not offer 100% protection for the investor’s capital”. However, “it takes a dramatic fall of 50% in the index levels across the five- year term for there to be any risk,” he said.
“For those who are happy to accept that degree of risk in exchange for these exceptional returns, this could be just what they have been waiting for.”
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Natixis Income 5 year Autocall |
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Investment issued |
1 March 2013 |
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Maturity date |
1 March 2018 |
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Repayment date |
8 March 2018 |
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Investment index |
FTSE 100; Russian Depositary Index; MSCI Taiwan |
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Minimum investment |
No minimum |
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Quarterly income payments |
2.30% (USD) 2.10% (GBP), paid where the levels of the 3 indices are 80% or higher |
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Annual early maturity opportunities |
Early redemption triggered where the levels of the three indices are equal to or higher |
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Repayment amount on maturity |
Full return of capital so long as the levels of the three indices are at least 50% of their initial levels on the maturity date: otherwise capital is reduced |
