Capital Protected Products
The strength of a Capital Protected product lies in its flexibility and tailored approach to investing. In their simplest form, Capital Protected products offer investors full or partial capital protection coupled with equity-linked performance and a variable degree of leverage. They are commonly used as portfolio enhancement tools to increase returns while limiting the risk of capital loss.
Intus Brokers has a large selection of various Capital Protected Products in our offering. These products are issued by major international banks with high ratings. The capital protection is typically 100% at the maturity as long as the underlying stock indices have not fallen more than -30 -40% from their start levels. If there would happen a larger fall then the capital is repaid according to the weakest performed stock index. The annual coupons payable vary between 4% to 16% depending on the product terms. With some products the coupon is paid even the underlying stock indices have fallen. The Capital Protected Products are usually issued in US Dollars (USD) or UK Pound Sterling (GBP) due to the higher interest rate these currencies have.
Our affiliate Group company, Intus Savings and Loan Association, has a special Currency Hedging Service for Euro investors when they invest in Capital Protected Products. Intus will then cover the currency risk and pay to the investor the possible loss if Euro would weaken towards US Dollar or UK Pound Sterling during the investment term. The servicing fee is competitive versus the higher return there currently is when investing in USD or GBP. More information about Currency Hedging Service can be found here.
How to invest in the Capital Protected Products?
You can invest in Capital Protected Products through Life Insurance products or through investment trading platforms like Novia Global.