Dura Capital – Credit Agricole FTSE/EuroStoxx Defensive Autocall Plan 46
Dura have recently launched their plan number 46. This plan introduces a new counterparty to their suite and offers some very attractive rates given where markets are and the cut to rates, we have recently seen, however, it is only available on an advised basis.
A little more about Credit Agricole:
Credit Agricole’s cooperative model is the bedrock of the entire Group and the mainspring of its values. It has 51 million clients, 141,000 employees, 8,500 branches in France and a Global presence in 47 countries. Credit Agricole Corporate and Investment Bank (CIB) has a network of 18 trading rooms around the world, of which five are liquidity centres: London, Paris, New York, Hong Kong and Tokyo. It offers its clients a strong positioning in Europe, Asia, the Middle East and in the Americas.
Ratings: (Moody’s), A+ (S&P), AA- (Fitch) as at 19/05/2020
The plan is based upon the performance of the FTSE100 and the EUROSTOX50, the below table shows the journey of the investment.
This Plan is designed to repay your initial investment and deliver a return dependent on the performance of the FTSE 100 and EuroStoxx 50.
- Potential return of 8.25% p.a, first Autocall Date is end of year 2
- Dependent on the performance of FTSE 100 and EuroStoxx 50
- 65% capital at risk barrier at maturity
- Maximum term 8y maturity
The first Autocall Date is at the end of year 2. If at the end of year 2, 3, 4, 5, 6, 7 or 8 the worse performing Index is equal to or above a specified percentage of its Initial Index Level, the Plan will autocall (mature) returning your initial investment plus a fixed return equal to 8.25% p.a. not compounded.
If at the end of 8 years the worse performing Index is lower than 75% of its Initial Index Level, your investment will have earned no return.
Your Investment Is At Risk:
If the Plan runs for the full term and the worse performing Index finishes lower than 65% of its Initial Index Level (i.e. the Index has fallen more than 35%), your initial investment will be reduced by 1% for every 1% fall in that index.
Who is the Plan Aimed At?
This Plan is targeted at clients who are looking for equity-linked returns over a 8 year period, but are comfortable that the investment may mature early. It is also intended for people who are cautious on equity market growth.
Investors should be prepared to risk their capital to have the potential of achieving higher returns. Investors should be able to understand complex products and the risks associated with this investment.
For more details and product literature please click on the following link:
Don’t Forget the Risks
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquid or counterparty exposure.
As always, if you require advice simply get in touch.
Stay safe, stay healthy.
Very best wishes at this time.
Best Price FS Team