Structured Products are investment products where the return is linked to an underlying asset with pre-defined features like maturity date, coupon date and capital protection level. A structured product can be seen as a product package using three main components: a bond, one or more underlying assets and the financial instruments linked to these underlying assets.
An example of a structured product involves the investor giving up the potential upside exposure to the underlying asset in exchange for an enhanced coupon that can be either guaranteed or conditional. The investor is not exposed to the downside exposure, unless the underlying asset breaks through a predefined barrier set at the inception of the product. Other risks include issuer risk, liquidity risk, exposure to the performance of the underlying asset, exchange rate risk etc.
Ancoria Insurance offers structured funds that invest in structured products issued and guaranteed by at least five different highly ranked financial institutions, to reduce issuer risk. In March, one of Ancoria’s EUR structured funds automatically expired, a year after its launch, paying investors their capital plus an enhanced coupon. A similar EUR structured fund was launched and was fully subscribed later in the month. If market conditions permit it, we are planning to offer a new structured fund in Swedish krona later in the year.
Ancoria 5-Year EUR Autocall 6.7% Fund – Autocalled on 08.03.2023
The structured fund was autocalled on the 8th of March 2023, one year after its start date, as the Euro Stoxx 50 Index closed at 4,288.45, well above the initial strike level of 3,505.29. As specified in the fund conditions, on the 29th of March 2023, clients who invested in this fund received their initial investment amount plus an additional cash amount equivalent to a net return of 6%.
New structured fund in EUR with conditional coupon 8.5% per annum – Launched and subscribed in full
This structured Fund was launched in March and was subscribed in full. The Fund gives policyholders the opportunity to earn an attractive gross return of 8.5% per annum with a yearly early redemption feature as well as conditional capital guarantee at maturity, depending on the performance of the EURO STOXX 50 Index.
New structured fund in SEK to be offered later in the year
Market conditions permitting, we are planning to offer a new structured fund in SEK that will give investors an attractive gross return with a yearly early redemption feature as well as conditional capital guarantee at maturity.