startpoint investments product summary march 2014
TRANSCRIPT
Introducing
Availability
Open over a 6 week offer period – minimum investment £5,000
And they all Strike/Commence within 2/3 days of close
PLANS:- Direct Investment, Equity ISA, Equity and Cash ISA transfer
DEPOSITS:- Direct Investment (R85), Cash ISA, Cash ISA transfer
Offshore Bonds
ALL: – SIPP/SSAS, Trustee, Charity, Company and Non UK residents
Wraps/Platforms
Who are BNP Paribas
One of the Worlds largest retail Banks
Currently operating in 78 countries – including -
France, Belgium, Luxembourg Italy, USA, Hawaii & Africa
188,000 staff
34 million retail/corporate clients
Voted Europe’s - Best Structured Product Provider 2013
Recently acquired RBS’s Global Structured Products book worth
£175 billion
BNPP Credentials
Credit Rating Agency Rating Outlook
S & P A+ Stable
Moody’s A2 Stable
Fitch A+ Negative
Company S & P Credit Rating Credit Default Swap
HSBC AA- 74
BNP Paribas A+ 78
Lloyds A 80
Barclays A 96
RBS A 115
Santander A 128
Solutions
FTSE Autocall
FTSE
Initial Valuation:
Eg. 6500
Autocall level:
100% or greater
of initial value
Maturity:
Pay-Out
Capital plus Coupon
Rise required for
same return
Year 1 N/A N/A N/A
Year 2 6500 16% 7540
Year 3 6500 24% 8060
Year 4 6500 32% 8580
Year 5 6500 40% 9100
Year 6 6500 48% 9620
Standard Kick Out/Autocall – referencing the FTSE100 only
Coupon 8.00 % per annum offering a 60% End of Term protection barrier
FTSE Step Down Autocall
FTSE
Initial
Valuation:
Eg. 6500
Reducing Autocall
level based on
initial value
Maturity:
Pay-Out
Capital plus
Coupon
Rise required for same
return
Year 1 N/A N/A N/A
Year 2 6500 (100%) 12.8% 7332
Year 3 6337.5 (97.5%) 19.2% 7748
Year 4 6175 (95%) 25.6% 8164
Year 5 6012 (92.5%) 32% 8580
Year 6 5200 (80%) 38.4% 8996
Step-Down Kick Out/Autocall – referencing the FTSE100 only
Coupon 6.4% per annum offering a 50% Anytime protection barrier
FTSE-4/FTSE-100 Autocall
• Coupon 12% p.a. – then an additional 3.0% p.q. – thereafter
• 60% European (end of term) protection barrier linked to the
FTSE-100 not the shares
• 20 potential kickout dates
Autocall level
All 4 shares must be:
Maturity Pay-Out
Capital plus Coupon
1st Anniversary Same or higher than
initial value
12%
Quarterly thereafter Same or higher than
initial value
3% per quarter held
Final Valuation date 75% or higher than
initial value
72% at maturity
FTSE-4/FTSE-100 Fixed Coupon Daily Autocall
• Max term of 6 years – potential to kickout DAILY from 1st
anniversary
• Fixed Coupon 27.5% whether that be in year 1 or year 6
• 60% European (end of term) protection barrier linked to the
FTSE-100 not the shares
• Over 1000 potential kickout dates
Autocall level
All 4 shares must be:
Maturity Pay-Out
Capital plus Coupon
1st Anniversary Same or higher than
initial value
Fixed 27.5%
Daily thereafter Same or higher than
initial value
Fixed 27.5%
Historical -Pay off Profile
Plan Coupon % Occasion
Return Paid
Capital
Loss
Simulations Since Years
Step Down 6.4% 98.76 % 0.11% 6127 Jan 84 30
FTSE Autocall
8.0% 88.55% 0.00 % 6116 Jan 84 30
FTSE4/FTSE100
12% 71.74% 0.00% 3959 July 92 21
FTSE Kick Out SuperTracker
FTSE100 Year 3 Year 6
FTSE Level or above
initial value
Pay matures and pays
capital plus full rise in
index (uncapped)
Minimum return of
21%
FTSE below initial
value at Year 3
No
early maturity
Plan matures at Year 6
and multiplies any rise
in Index x 3 (max 75%)
FTSE below initial
value at Year 6
Plan returns capital in
full as long as FTSE100
has not fallen by more
than 40% since strike
Pays a potential minimum of 21% or a maximum of 75%
Quarterly Income Plan
FTSE at
Strike 6800
pts
%
movement
+/-
FTSE100
Lower Level
FTSE100
Higher Level
Year 1 10% 6120 7480
Year 2 10% 6120 7480
Year 3 15% 5780 7820
Year 4 20% 5440 8160
Year 5 25% 5100 8500
Year 6 30% 4760 8840
Potential annual coupon of 7.0% p.a. – 1.75% p.q.
Offering a 60% End of Term protection barrier
8840
8500 130%
8160 125%
7820 120%
7480 7480 115%
110% 110%
90% 90%
6120 6120 85%
5780 80%
5440 75%
5100 70%
4780
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
6800 Pts
1.75% per quarter
Capital Protected Solutions
Index is equally split across the 4/5 star Morningstar rated funds
Standard Life GARS (UK) - AUM – (£17,359m) 5 year return 54.26%
Carmignac Patrimoine (France) – AUM – (€29,259m) 5 year return 39.48%
Ethna- Aktiv (Switzerland) – AUM – (€4,856m) 5 year return 40.35%
Newton Real Returns Fund (UK) – AUM – (£8,027m) 5 year return 42.76%
Flexible Fund Stars Plan
BNP Paribas Flexible Funds Star Index
• 100% Capital Protected
• 4 of the most successful Absolute Return Funds – All 4/5 star rated by
Morningstar
• Year 3 – If the Index has risen 15% or more – the plan matures and pays
Capital plus the full percentage rise in the Flexible Fund Star Index
(uncapped)
• If no early maturity – Year 6 – investors then receive 175% (1.75 x the
rise) in the Index (uncapped)
• e.g. If the Index has risen 40% over the term – Investors receive capital
plus 70% (1.75 x 40% rise)
Fund Stars v FTSE100 - Bloomberg
Coming Soon - FTSE Defensive Deposit
FTSE100 6 Year Deposit
FTSE finishes at or
above 90% of it
starting level
Pays a minimum
return of Capital
plus 12%
Or 100% the rise in
the Index (max 30%)
• 100% Capital Protected Deposit
• Lloyds Bank – Deposit taker
• FSCS Protection up to first £85,000
Full Back Testing of FTSE since 1984:
• 87.50% of cases resulted in a positive return of at least 12%
• The full return of 30% was returned in 50% of cases
Coming Soon – FTSE 4 Autocall Deposit
• Coupon 5.5% p.a. – payable from Year 3
• 100% Protected - Lloyds Bank Deposit - £85k FSCS
Autocall level
-All 4 shares must be:
Maturity Pay-Out
Capital plus Coupon
Years 1 & 2 N/A N/A
Year 3 100% 16.5%
Year 4 95% 22%
Year 5 90% 27.5%
Year 6 80% 33%
Full Back Testing of stocks since launches in 1992:
86.88% of cases = a positive return of 5.5% per annum
Plan matured in year 3 in 50.93% of cases
Deposit Idea – FTSE Top 6 Himalaya Deposit
Investment ObjectiveEstablished stock tend to follow cyclical paths. This plan is designed to lock
in the performance of each stock when it performs positively
At maturity, the investor receives geared participation in the average of the
locked in returns.
• 100% protected Lloyds Bank Deposit - £85k FSCS
• 6 year term
• Every year, the top performing stock has its performance recorded.
Its then removed from the basket (performance floored at 0 and
capped at 50%)
• At maturity, the average locked in return are taken and investor gets
125% of this performance
• Backtesting – 99.86% of cases gave a positive return
FTSE Top 6 Himalaya Deposit Performance Example
Years GSK BAT BP Shell Vodafone HSBC Locked-inPerformance
1 -3% -4% -9% -8% -5% -10% 0%
2 20% 19% 17% 10% 8% 20%
3 42% 27% 32% 12% 42%
4 36% 35% 20% 36%
5 56% 32% 56%
6 53% 53%
Average Perf. 35%
Final Return
= 125% x Average Perf
(35%)
= 43.75%
Private Placement/ Bespoke
• Available for clients with £750,000 plus
Tailor made – clients can select the:-
• Product Type – just about anything!
• Term
• Protection/Barrier
• Indices/Shares etc
• Coupon
• Full 30 page KFD is produced
• Solution can be split across as many clients as appropriate