Articles by Tim Mortimer
Linking to UK banking stocks
Cater Allen Private Bank is offering a capital-protected kickout product linked to a portfolio of four UK banking stocks. The potential return is 11%, although final averaging can constrain growth in a rising market
Market snapshot
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
Stabilisers for all
BNP Paribas has launched the Privalto Stabiliser, a six-year simple growth product linked to equity, commodity, currency and property. Capital protection is included as part of the package unless the early exit feature is exercised
Greater China plus Singapore
JP Morgan is offering Asia confidence notes in Singapore and US dollars in the form of a two-and-a-half year product that links into four equity indexes, in China, Hong Kong, Singapore and Taiwan
A copy of carbon
Sterling Waterford is providing a four-year carbon credit note in South Africa for which capital is protected at maturity, although illiquid assets may make the product hard to value at the end of the term
Follow the bear
Merrill Lynch has launched an 18-month bear market review note linked to the Dow Jones US Real Estate Index offering a premium of 14.8% and a potential early return as well as a known underlying
Income and inflation cover
Investec is offering a five-year income product linked to the FTSE 100 with coupons linked to inflation. Capital is not protected at maturity if the 50% barrier is breached at any time during the life of the product
Market snapshot
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
Looking for the up escalator
Deutsche Bank is offering escalator notes linked to a basket of equity, currency and commodity indexes. Principal is protected at maturity and returns are locked in if the index rises above certain designated levels during the product term
Newcastle offers clean energy
Newcastle Intermediary Services has launched a five-year capital-growth product based on 20 alternative energy companies. The principal investment is protected at maturity, and returns are subject to income tax
Towards the best of three
Arc is offering a simple growth product linked to three commodities and weighted relative to their performance. Returns will be subject to capital gains tax, and capital is protected at maturity
Agriculture in a basket
ABN Amro has provided a sharia-compliant two-year capital-protected income product linked to a basket of international agricultural stocks. There is an 8% cap on individual stock growth
Market snapshot
Tim Mortimer of Future Value Consultants looks at the pricing issues for structured products in different markets and provides his trade of the month
Reaping the dividends
Credit Suisse is offering a five-year CPPI product, based on a pick of Australian stocks and offering semi-annual income based on dividend yields
Commodity plays and hedges
Barclays Bank is offering a link to 14 commodities and one commodity index which allows investors to take a stake in the rise of the main commodity subsectors while also providing a natural hedge against inflation
Inflation-linker boosters
Merrill Lynch has released two high-scoring inflation products, one based on the euro, one on the Swiss franc. The basic structure is the same for both products, with differences reflecting the relative risk and merits of following the two markets
Tracker with liquid underlying
Vontobel is offering retail investors a money market note that tracks its six-month total return swap index. The value of the product is the level of the Vontobel six-month total return swap index minus the management fees
Sovereign and state bank links - Product review
Societe Generale is offering investors a link to the sovereign debt of China, Malaysia, South Korea and Thailand and the banking debt of the State Bank of India. Capital is protected and coupons are fixed at 3.3%, although the issuer has the right to…
Buying commercial property - Product review
Morgan Stanley has released UK Commercial Property Growth 1, a capital-protected product linked to the IPD UK Annual Growth Index, for which gains will be subject to capital gains tax. Participation is deemed a healthy 100% of the index performance
Keydata offers kickouts - Product review
Keydata Investment Services is offering a six-year multi-kickout product linked to the FTSE 100 for which capital is not protected at maturity only if the final index level is below the 50% barrier. Potential returns are 12% (not compounded) annually