Notes issued by this series will aim to shield investors from potential market downturns by providing capital protection whilst aiming to deliver 100% upside participation of the S&P500 Index over a three-year period, so that regardless of the index' performance, your original capital investment is preserved when the note matures.
The Standard and Poor's 500 or S&P500, is a stock market index that tracks the share price performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and is widely regarded as a benchmark for the overall health of the US stock market and serves as a representation of the broader economy.
Investing in the S&P500 is a popular strategy because of the wide market breadth of the large-cap companies included in the index from a broad variety of different sectors such as technology, finance, healthcare and consumer goods. Some well-known companies that are part of the index include Apple, Microsoft, Amazon, Meta, JPMorgan Chase, Johnson & Johnson, Procter & Gamble, Coca-Cola and Exxon Mobil.
Diversification through this index helps to mitigate the impact of sector-specific volatility and aims to mitigate the risks associated with any one sector's poor performance over a given period. Even if one sector is underperforming, the positive performance of other sectors can help offset any potential losses. This diversification can provide a more stable investment over the medium to long term, particularly for investors who prefer a more passive investment approach.
Whilst this level of diversification serves to manage some of the risks associated with equity investment there is always the potential for a market correction that could result in substantial losses. The objectives of the Principal Protected S&P500 Tracker are to deliver 100% participation of the S&P500 over a five-year period with capital protection, so that if a sizeable market correction occurs, the principal amount invested will still become payable on maturity.
This financial instrument has been designed to appeal to risk-averse investors who expect to hold the asset through to maturity and wish to have the added security of knowing that protection for capital loss is mitigated.
Details
About the Capital Preserved S&P500 Index Tracker
The Capital Preserved S&P500 Index Tracker is a unique financial instrument that combines the growth potential achievable by investing in the S&P500 Index coupled with the peace of mind of capital preservation.
The Capital Preserved S&P500 Index Tracker is a structured product involving derivative components. Investors should make sure that their advisors have verified that this product is suitable for their portfolio taking into account the investor's financial situation, investment experience, risk appetite and investment objectives.
The issuer is UK regulated financial Institutional that has a Standard & Poor’s Rating of BBB.
Pricing
The Capital Preserved S&P500 Index Tracker is denominated in US Dollars and has daily pricing. Units that are purchased will generally be issued on the following business day. During the Initial Offering Period there is no initial charge to invest and after the initial offering period there will be a 5% initial charge.
Full details of the charges and pricing are detailed on the term sheet which is available to eligible investors here
How to Invest
The process to invest in the Capital Preserved S&P500 Index Tracker is a relatively straightforward exercise that most professional investors will be familiar with. It is done in the same way as purchasing shares or bonds through your account with a custodian bank or stockbroker.
Settlement Instructions are available to eligible investors by email us at info@capitalprotectedsecurities.com
This investment is only available to sophisticated investors. Before you issue an instruction to invest you must read the prospectus and the term sheet to ensure that you fully understand the terms and conditions, the risks involved and that you are eligible to invest.
How to Redeem
It is intended that there will be an active secondary market for the Capital Preserved S&P500 Index Tracker, which is intended to be listed on the Vienna Stock Exchange.
Each Investor will be automatically redeemed after the redemption date, which is intended to be on the 22nd of March 2027.