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SRPInsight Issue 4 | April/May 2021 @SRP_Insider ACTIVE APPROACH TO PASSIVE INVESTING AMERICAS // CUSTOM INDICES PROFILE // FNZ-HUB SRP AWARDS // SOCGEN p10 p24 p28 SRPInsight CONTENTS Editorial: Amelie Labbé, Pablo Conde, Lavanya Nair, Summer Wang, Marc Wolterink Contents Production: Paul Pancham Marketing: News Europe 4 Monique Kimona Bonnick The Application Programming Interface (API), is a web-based software Sales: News Americas 10 application which allows clients to access our data in a controlled Reihaneh Fakhari manner & integrate it using their own software packages & systems. News Apac 16 If you are interested in having a similar bespoke report produced for your organisation, please Expert View: Industry has shown resilience, now it is contact: at an inflection point 21 Retrieve. Reihaneh Fakhari T: +44 (0)20 7779 8220 Profile:FNZ Q-Hub - servicing QIS and AMCs • Download real time SRP data directly to excel M: +44 (0)79 8075 6761 with a customised touch 24 E: Reihaneh@structuredretail • Receive market share on each asset class/payoff for products.com each company of interest Feature: BBVA shifts gear as equities chief plan gains momentum 26 REPRINT POLICY: SRP’s Reprint Policy: Articles published by Feature: SRP 2021 Awards - SG racks up €15bn on SRP can be sent to sources for reference and for internal use only (including decrement, and counting 28 Interrogate. intranet posting and internal distribution). If an article is to be shared with a third party or re-published on a public website Q&A: Barclays: commodities are an interesting • Monitor & increase your market share (i.e. a location on the World Wide Web space to watch 30 that is accessible by anyone with a web • Carry out accurate trend analysis with comprenhensive browser and access to the internet), product data spanning over 15 years in seconds SRP offers reprints, PDFs of articles or Q&A: View from the top: investors want a more advertisements, and the licensing to active approach to saving, investing 32 republish any content published on the SRP website. Prices vary depending on size, quantity and any additional Expert View: The role of derivatives in the evolution requirements. To request authorisation to republish any Q&A, profile or feature of structured products 34 published by SRP, please contact: Incorporate. [email protected]. Expert View: Product analysis: downside accrual barrier with a twist 36 • Import data directly into in-house systems/platforms and interrogate the data and risk more effectively Product wrap 38 • Combine data sets with other products and visualise it in the context of the larger business People moves 41 www.structuredretailproducts.com 3 SRPInsight NEWS | EUROPE NEWS | EUROPE SIP Nordic partners with BNP Paribas to enter Belgian market sees renewed interest for South African market structured products After failed attempts in the US and UK markets, the Swedish distributor has Structured products contributed to the recovery of the financial markets end-2020 launched its first products in South Africa with the French bank. as many investors include them in their portfolio. wedish structured products Sales volumes of structured products Belgium: primary market sales and issuance by quarter* marketing firm SIP Nordic has on the primary market amounted to €1 entered the South African billion (excluding leverage products) in 1,600 80 market via a collaboration with the fourth quarter of 2020, according BNP Paribas and investment to the latest figures released by the 1,400 70 platform iTransact. This is the third attempt by Belgian Structured Investment Products S 1,200 60 Association (Belsipa). SIP Nordic South Africa is headed by the Swedish firm to expand 1,000 50 Peter Steele as managing director. Compared to the previous quarter, sales Steele joined the firm in early 2020 to volumes increased by 31% but year-on- 800 40 establish the firm’s sales distribution in beyond the Nordics year (YoY) turnover was down by 24% South Africa. (Q4 2019: €1.3m). 600 30 400 20 Steele was previously in charge of The volumes in equity-linked products structured products and unit trusts decreased by 29% to €413m while 200 10 distribution at Cadiz Asset Management representative of Meteor Asset at the forefront of innovation in the turnover of products with fixed income- in South Africa. He said SIP Nordics SA Management. world by investing extensively in six underlyings, at €539m, tripled when 0 0 will offer ‘a carefully designed range of innovative fields. compared to Q3 2020. Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 structured products to bridge the gap SIP Nordic has a number of live products Sales EURm (LHS) Issuance (RHS) between investors’ capital growth and across markets including three live The BNP Paribas Tandem Plus Certificate The share of capital-protected products income needs, and protection from products in the UK set to mature (ZAR) Series 1 is a five-year structure as part of the primary market turnover *Excl. flow and leverage products market falls’. between March and June 2021 worth an linked to the Solactive Sustainable rose by 38% on an annual basis, while it Source: StructuredRetailProducts.com estimated US$22m, as well as 141 live Development Goals World RC8 EUR even doubled on a quarterly basis. The SIP Nordic team is completed with products in Sweden, 81 in Finland, and Index, which is made up of a diversified Graziella Wall also formerly at Cadiz AM, 26 in Norway. portfolio of companies worldwide The turnover of structured investment protection; and one product each shares of 20 global companies, capped and Leanne Weiss and Selest Hinton as contributing to the Sustainable products sold on the secondary market protects 85% and 50% of the nominal at a maximum rise of 15%. The minimum business development managers. SIP Nordic opened offices in South Development Goals and which has the in Belgium amounted to €450m, an invested, respectively. capital return is 90%. Africa in January 2020, and launched addition of a risk control (RC) mechanism. increase of 16% compared to Q3 2020 The firm is seeking to expand the its first products in mid-February 2021 but a decrease of 25% YoY. Thirty products were linked to a single One hundred and one products existing offer for South African investors via the iTransact platform which carries The products will pay a 12% coupon on a index, of which the Stoxx Global matured during the fourth quarter. Of which is mainly focused on unit trusts, structured products from other South quarter of the initial investment after one Structured products made a reasonable Infrastructure Select 30 EUR – seen these Belfius’ Tactical Autoswitchable 5 with a range of structured income plans. African providers such as Absa and year and a 24% on a quarter of the initial contribution to the general recovery of in four products (€27m) – was the provided the highest annualised return. Investec. investment after three years regardless the financial markets at the end of last most frequently used. There were also The product, which was linked to the This is the third attempt by the Swedish of the index performance and 150% year, according to Belsipa chair Florence structures linked to Stoxx Europe 600 Eurostoxx Select Dividend 30 and sold firm led by Mats Halvorsen to expand The current offer includes three ZAR- participation at maturity on the index Devleeschauwer. Healthcare (€47m from three products); €1.2m at inception, returned 130% of beyond the Nordics. SIP Nordic denominated uncapped call products performance on 50% of the investment Solactive Digital Economy (€35m from the nominal invested after five-years, or launched SIP America, a US registered hedged by BNP Paribas which will be alongside the initial capital. ‘[Structured products] are seen as a two products); and Thomson Reuters 5.38% pa. broker-dealer, in 2010 to replicate its available for subscription until 31 March. resilient part of the investment universe Europe Equal Opportunities Select Index service and support model for structured The BNP Paribas Tandem Certificate and many retail clients have them back (€22m from three products), issued According to Belsipa, more than half products in the US intermediary space, The BNP Paribas Enhanced Growth (ZAR) Series 2 is also a five-year 100% in their portfolio,’ she said. during the quarter. of all newly issued structured products but exited in the market in 2013. The Certificate series 2 is a five-year fully capital protected structure linked to the were capital-protected. firm also launched in the UK in 2009 protected structure and will pay at Solactive Sustainable Development SRP’s own data saw 43 structured The best-selling product in Q3 where to assist RBS with the distribution of maturity 145% participation on the Goals World RC8 EUR Index. The products (excluding flow and leverage) ING Bank’s three-year Participation The importance of capital protection, structured products in the UK adviser average performance of the Nasdaq product will pay a 12% coupon on half of striking between 1 October and 31 Notes 11/23, which sold €25m during within the spectrum of structured market but closed its UK business in Yewno Global Innovative Tech Index, the initial investment after one year and December 2020. Of these, 16 pay its subscription period. The securities products, be it bonds, funds or insurance 2015 and was relaunched as Meteor which is comprised of 100 stocks of a 150% participation on the performance a minimum capital return of 100% or participate 100% in the positive products,
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