BNP Paribas is to launch a structured product Ucits fund offering exposure to European equities.
The BNP Paribas Defined Return Europe Opportunity Fund, which launches next month, is Ucits compliant and is a six year auto-call product linked to the EURO STOXX 50 index. The investment manager is THEAM, a subsidiary of BNP Paribas Investment Partners.
It pays an 8 per cent coupon for each year the investment is held if the index closes at or above 100 per cent of its initial level on any annual valuation date.
Capital is fully at risk. Investors get their capital back only if the EURO STOXX 50 index is not below 50 per cent of its initial level at maturity.
The minimum investment is £1,000. There is no initial charge and annual management fee is 0.75 per cent. There is no exit fee.
The counterparty is BNP Paribas, but the fund is collateralised with either cash denominated in US dollars, euros, pounds or government bonds issued by Austria, Belgium, France, Germany, Sweden, Netherlands, UK or the USA.