A strong year for retail bonds

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "A strong year for retail bonds"

Transcription

1 A strong year for retail bonds The Orderbook for Retail Bonds (ORB) opened 1 February 2010, with the aim of promoting both a transparent secondary market in bonds for retail investors as well as developing a primary market to distribute dedicated retail bonds to investors. At launch a range of existing bonds available to trade in smaller denominations were quoted on ORB. Since the start about 30 dedicated retail issues have been launched raising over 2.3bn* with the second half of 2012 being particularly busy from a new issue perspective. We use the end of the year as an opportunity to look at how the retail bond market has become more established and review some of the bond performances. Retail Bond Issuance (number of new issues, excluding some structured tured bonds) Source: Investec The retail bond market allows issuers to diversify their funding base which has been especially important at a time when banks are reducing balance sheets. It also gives retail investors a better opportunity to invest directly in bonds with the associated fixed income stream and fixed maturity date. Investments in fixed income funds may give investors access to the lower risk profile of bonds (compared to equity investments, and subject to fund leverage and investment profile) but funds do not provide the same certain cashflow, and of course the retail bond market gives investors direct control over which credits to invest in has seen a sharp increase in retail bond issuance. Market turbulence affected first half issuance and only 3 of the 14 sterling denominated bonds launched this year came in the first half. The second half has seen over 1.1bn raised in the retail bond market, roughly the same amount as in the preceding 18 months put together*. With the market continuing to grow we could well see new issuance trying to break the 3bn mark in (* We have excluded the EIB 3.25% 2016 bond from our calculations, while an ORB listed bond this issue was largely taken up by institutional investors, so including it exaggerates the amount raised from retail investors. Other issues will also have seen some institutional involvement, but to a much smaller extent than for the EIB issue.)

2 We thought it would be interesting to look at how this new market has performed since launch and whether it serves its purpose in providing a transparent secondary market for retail investors. The growth of the market as mentioned above does to a large extent provide an affirmative answer to the question of whether it is serving its purpose in developing a primary market for retail bonds. More market makers, improved transparency Let s look at the transparency issue first. In the early days of ORB most issues had only 1-2 official market makers, banks or brokers committed to make two way prices on the exchange, though a small number of others may have made prices on their own trading platforms. Over the last year this has improved and most of the dedicated retail bonds now have at least 5 official market makers. A larger number of price providers ensure greater price discovery and transparency for investors and it also signals that the retail bond market is becoming more established. Going forward we expect to see this trend continue, though there will always be some difference in liquidity between smaller and larger issue sizes. There may also be potential for a stronger overlap between institutional and retail markets in the future which could improve liquidity for the retail market, though it will be important to ensure that this enhances rather than crowds out the retail market. Performance of retail bonds, absolute and relative With bond yields trending down over the last few years and reaching historic lows in 2012, absolute performance of most bond issuance has been good and total returns have mostly exceeded yields at issue as can be seen by all but two of the fixed rate issues trading above par value (issue price). Low yield levels have driven a hunt for yield across bond markets and the retail market has not been immune to this saw mainly rated investment grade companies accessing the retail market, the exception being Tesco Personal Finance, which does not have its own rating. In 2012 there have been 7 unrated deals to date, mostly by FTSE 250 companies. Retail investors may be familiar and comfortable with these issuers, but it is fair to say this represents a move into higher risk and therefore higher yield territory compared to deals brought to market in Higher risk could leave retail bond holders more exposed in case of a deteriorating economic environment, but it has provided a good return to date and with our core outlook forecasting a gradual if somewhat slow improvement of the economy, the general prospects should look good for the year to come too. Relative returns have also generally been good for retail bonds, though the picture gets a little more mixed here. Of the dedicated fixed rate retail bonds issued since the launch of ORB back in 2010, 6 of the 17 bonds currently trade at a spread over gilts wider than that at issuance. (We have used spread as of first settlement day with the corporate bond valued at par as issue spread, retail bonds are not issued on a spread over gilt basis and the long subscription period makes it difficult to give an accurate issue spread ). Because of the higher yield at issuance only 4 of the 17 bonds have underperformed gilts of a similar maturity since the launch of the relevant retail bond. The table below shows the percentage total return outperformance of individual issues relative to gilts. The first bond issued, the Provident Financial 7% 2020 has returned 26.85% to holders who bought when it was issued in April 2010, that return comprises the 7% annual coupon (paid semi-annually) as well as the price gain as the bond currently trades at The 2.77% underperformance shown in the table below is a result of the 4.75% 2020 gilt having returned 29.6% over the same time period. The bonds are listed in order of issue date, St Modwen is the most recent issue (Unite is the last confirmed issue, but has not yet reached first settlement date) and as mentioned Provident Financial 7% 2020 was the first dedicated ORB issue. As the TR returns below are not annualized older issues benefit from having had a longer time to accumulate yields above those of gilts. For example the best performer on the list, Intermediate Capital Group 7% 2018 has outperformed gilts by 9.57%, roughly half of that comes from the spread tightening, and half from the issue yield. St Modwen 6.25% 2019 was issued about a

3 month ago and nearly all the return to date comes from spread tightening, higher price with the bond having had very little time to accumulate return from the issue yield. Retail Bond Total Return relative to relevant gilt, % since issuance (not annualized) St Modwen 6.25% 2019 London Stock Exchange 4.75% 2021 Workspace 6% 2019 Beazley 5.375% Intermediate Capital Group 6.25% CLS Holdings5.5% ICAP 5.5% Primary Health Properties 5.375% Tesco Personal Finance 5% 2020 Provident Financial 7% Intermediate Capital Group 7% Places for People 5% 2016 Provident Financial 7.5% 2016 Lloyds TSB Bank 5.5% EIB 3.25% Tesco Personal Finance 5.2% Provident Financial7% Source: Bloomberg, Investec

4 New Issue Premiums While many investors in retail bonds are buy-to-hold investors there is always some selling of old issues as new ones are announced. We thought it would be interesting to see how a strategy of selling one s holdings to invest in the next issue would have fared in the retail bond market, this should also give us some indication of the degree of new issue spread available in the market. If an investor bought 100,000 of Provident Financial s 7% 2020 note, the first ORB issue (we are ignoring the RBS issues, though dedicated ORB issues most are more akin to structured notes), sold it when the TSCOLN 5.2% 2018 came along nearly a year later and then kept trading out of issues as new fixed rate bonds came along, the portfolio would have grown to about 163,200 over the 20 month period, or an annualized return of nearly 35% (we have assumed coupons or accrued are reinvested when buying a new bond, but ignored interest on interest as it only applies to the first Provident Financial issue, under this trading strategy all other bonds would have been sold prior to first coupon date). Some of this performance is due to generally lower yield levels, while a general widening of spreads would have worked to drive returns down, so how much is due to the new issue spread? If you bought the 3.75% 2019 gilt in April 2010 and held on to it, you would have seen a return of about 29.5%. The iboxx non-gilt 5-10year index saw spreads against benchmark widen about 40bps in the period from April 2010 to date, a 40bps widening would take about 3% off a 7 year bond. Taking the two effects together we can estimate the new issue premium effect to have added about 35% to the performance, or about 2.2% per issue (we have looked at 17 bonds, so 16 switches). Return from new issue trading strategy % Initial investment % 100 PFGLN 7% TSCOLN 5.2% EIB 3.25% LLOYDS 5.5% PFGLN 7.5% NBHA 5% ICPLN 7% PFGLN 7% TSCOLN 5% PHPLN 5.375% IAPLN 5.5% CLILN 5.5% ICPLN 6.25% BEZLN 5.375% WKPLN 6% LSELN 4.75% SMPLN /12/ /11/ /11/ /10/ /09/ /09/ /09/ /07/ /07/ /05/ /04/ /12/ /06/ /03/ /03/ /03/ /02/ /04/2010 Source: Bloomberg, Investec

5 A couple of warnings, the above analysis is simplistic. It assumes all bonds issues are suitable for a portfolio. This could well be the case, but in real life investors may set restrictions on investing in for example non-rated bonds, or limits on how much can be held in any one issue. The issuer space is also relatively small and because there may be some self-selection on the part of issuers, with the new market place attracting issuers keen to attract new investor bases the premiums paid may have been higher than what can be expected over the longer term as the market becomes more established. And, as always, past performance is not a guide to the future. The Year Ahead We expect the retail bond market to remain active in the next year and judging by issuance volumes in the second half of 2012 the prospects look good. The market is likely to continue to move with the economic environment. A stronger economic backdrop may increase demand for inflation indexed bonds, the inflation indexed retail bonds have not seen the same strong performance as conventional bonds to date, but a clarification of the RPI question and potentially wider concern over inflation could change this. Investor concern over the general level of interest rates may perhaps bring floating rate issuance. Or if things take a turn for the worse retail investors may rediscover their appetite for high quality, safe credits. Whichever way it goes we expect the market is here to stay, serving both investors and issuers alike.

6 Appendix Issue Spread (bps) Current Spread (bps) Gilt TR over same period % Current TR from Issue Bond Issue Date Price issuance % Size m PFGLN 7% /04/ TSCOLN 5.2% /02/ EIB 3.25% /03/ LLOYDS 5.5% /03/ PFGLN 7.5% /03/ NBHA 5% /06/ NGGLN 1.25% 2021 IL 06/10/ TSCOLN 1% 2019 IL 16/12/ ICPLN 7% /12/ NBHA 1% 2022 IL 31/01/ PFGLN 7% /04/ HSBC 2.875% /04/ RMB 2bn TSCOLN 5% /05/ SVTLN 1.3% 2022 IL 11/07/ PHPLN 5.375% /07/ IAPLN 5.5% /07/ CLILN 5.5% /09/ ICPLN 6.25% /09/ BEZLN 5.375% /09/ WKPLN 6% /10/ LSELN 4.75% /11/ SMPLN /11/ UNITE 6.125% 2020* 12/12/ Tullett 5.25% 2019* 11/12/2012 Alpha Plus 5.75% 2019* 18/12/2012 Source: Bloomberg, Investec. * bonds not yet formally issued, TR= Total Return A note on Issue Spreads: We have defined issue spread to be the spread over Gilts on Issue Date with the bond valued at Issue Price (= par for retail bonds). Because retail bonds are issued at par and there is a long subscription period the spread over Gilts may vary (in some cases substantially) between announcement and issue date. Contact Details Elisabeth Afseth Fixed Income Analyst Brian Barry Fixed Income Analyst

7 Disclaimer This material has been prepared by a member of the front office of Investec Bank plc. Front office personnel are not part of the Research department and this material does not constitute investment research as defined by the Financial Services Authority. This material is provided for information purposes only. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments and has no regard to the specific investment objectives, financial situation or particular needs of any recipient. It is not intended to provide legal, tax, accounting or other advice and recipients should obtain specific professional advice from their own, legal, tax, accounting or other appropriate professional advisers before embarking on any course of action. The information in this material is based on publicly available information and although it has been compiled or obtained from sources believed to be reliable, such information has not been independently verified and no guarantee, representation or warranty, express or implied, is made as to its accuracy, completeness or correctness. This material may contain information from third parties. Investec Bank plc has not independently verified the accuracy of such third party information and shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on this information. Information in this material is subject to change without notice. Investec Bank plc is under no obligation to update information previously provided to recipients. Investec Bank plc is also under no obligation to continue to provide recipients information in this material and may at any time in its sole discretion stop providing such information. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. This material is not intended to forecast or predict future events. Past performance is not a guarantee or indication of future results. Any prices provided herein (other than those that are identified as being historical) are indicative only and do not represent firm quotes as to either price or size. Financial instruments denominated in a foreign currency are subject to exchange rate fluctuations, which may have an adverse effect on the price or value of an investment in such products. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without the prior express written permission of Investec bank plc. This material is not directed at, or intended for distribution or publication in, jurisdictions where availability or use would be contrary to applicable laws or regulations of such jurisdictions. No liability is accepted by Investec Bank plc for any damage, losses or costs (whether direct, indirect or consequential) that may arise from any use of this material.

The UK Retail Bond Market H1 2011 Performance Update

The UK Retail Bond Market H1 2011 Performance Update 1. Introduction The UK Retail Bond Market H1 2011 Performance Update Over the last 6 months, 7 transactions have been launched in the retail bond market in the UK, raising 540 million - with a further

More information

Investors Chronicle Roadshow 2011. Trading Bonds on the London Stock Exchange

Investors Chronicle Roadshow 2011. Trading Bonds on the London Stock Exchange Investors Chronicle Roadshow 2011 Trading Bonds on the London Stock Exchange Agenda How do bonds work? Risks associated with bonds Order book for Retail Bonds London Stock Exchange Website Tools 2 How

More information

Welcome to ORB. London Stock Exchange s Order book for Retail Bonds

Welcome to ORB. London Stock Exchange s Order book for Retail Bonds Welcome to ORB s Order book for Retail Bonds Driven by investor demand Increasing private investor focus on fixed income Bond funds saw record inflows in 2009 and 2010 Strong demand from UK private client

More information

An easy way of investing offshore

An easy way of investing offshore A JSE / Deutsche Bank initiative An easy way of investing offshore Exchange Traded Funds ETFs Itrix DJ EURO STOXX 50 Itrix FTSE 100 Itrix ETFs allow you to Diversify your investment portfolio offshore

More information

New Impala Bond Offering: Scottish Widows plc. September 2013

New Impala Bond Offering: Scottish Widows plc. September 2013 New Impala Bond Offering: Scottish Widows plc September 2013 pg 2 Agenda Performance of the existing Impala bonds: LSE 4.75% and Barclays 14% Floating Rate Notes Brief overview of Scottish Widows plc business

More information

Understanding Fixed Income

Understanding Fixed Income Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding

More information

Retail Bond Conference

Retail Bond Conference Retail Bond Conference Brown Shipley 20 February 2013 Wealth well managed Not to be circulated to Retail Investors Today s Speakers Gillian Walmsley Michael Dyson Kevin Doran Head of Fixed Income Products

More information

TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS. The new electronic order book for retail bonds

TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS. The new electronic order book for retail bonds TRADING BONDS ON THE LONDON STOCK EXCHANGE A GUIDE FOR PRIVATE INVESTORS The new electronic order book for retail bonds Contents Introduction 3 What are bonds? 3 Bond basics 4 Types of bond issuer 5 Bond

More information

CONVERTIBLE DEBENTURES A PRIMER

CONVERTIBLE DEBENTURES A PRIMER What are convertible debentures? CONVERTIBLE DEBENTURES A PRIMER They are hybrid securities, combining the features of a conventional debenture with the option of converting, under certain circumstances,

More information

AIFMD investor information document Temple Bar Investment Trust PLC

AIFMD investor information document Temple Bar Investment Trust PLC AIFMD investor information document Temple Bar Investment Trust PLC Temple Bar Investment Trust PLC (the Company ) was incorporated in 1926 with the registered number 214601. The Company carries on business

More information

Maturity The date where the issuer must return the principal or the face value to the investor.

Maturity The date where the issuer must return the principal or the face value to the investor. PRODUCT INFORMATION SHEET - BONDS 1. WHAT ARE BONDS? A bond is a debt instrument issued by a borrowing entity (issuer) to investors (lenders) in return for lending their money to the issuer. The issuer

More information

Order book for Retail Bonds. Efficiency and transparency in trading bonds for private investors

Order book for Retail Bonds. Efficiency and transparency in trading bonds for private investors Order book for Retail Bonds Efficiency and transparency in trading bonds for private investors We aim to respond to private investor demand by offering a cost-effective, transparent and efficient mechanism.

More information

5 Year UK Growth Certificate

5 Year UK Growth Certificate 5 Year UK Growth Certificate The 5 Year UK Growth Certificate (the Certificate ) provides the opportunity to make a fixed return equal to 35.75% of the Issue Price (gross) on the Maturity Date. Whether

More information

The Merchant Securities FTSE 100. Hindsight II Note PRIVATE CLIENT ADVISORY

The Merchant Securities FTSE 100. Hindsight II Note PRIVATE CLIENT ADVISORY The Merchant Securities FTSE 100 Hindsight II Note Our first FTSE-100 Hindsight Note is now fully subscribed; however, as a result of exceptional investor demand we are launching the FTSE- 100 Hindsight

More information

Schroders Investment Trust ISA

Schroders Investment Trust ISA April 2016 Key Features of the Schroders Investment Trust ISA The Financial Conduct Authority is the independent financial services regulator. It requires us, Schroders, to give you this important information

More information

Factsheet Phoenix Autocallable Notes April 2012

Factsheet Phoenix Autocallable Notes April 2012 This information is intended for investment professionals only and should not be provided to or relied upon by retail investors in any circumstances. Investment Guide for Income Builder December 2011 www.gilliat.co.uk

More information

High yield bonds. US senior loans update. begin on page 4.

High yield bonds. US senior loans update. begin on page 4. Chief Investment Office WM 20 March 2014 High yield bonds US senior loans update Barry McAlinden, CFA, strategist, UBS FS barry.mcalinden@ubs.com, +1 212 713 3261 Loan performance can best be characterized

More information

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market Market capitalization $b Spectrum Insights Damien Wood, Principal JUNE 9, 2015 Corporate bonds often provides investors with an income stream that is above deposit rates, but less risky than dividends

More information

Why ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group

Why ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group Atul Lele alele@deltecinv.com +1 242 302 4135 David Munoz dmunoz@deltecinv.com +1 242 302 4106 David Frazer dfrazer@deltecinv.com +1 242 302 4156 Why ECB QE is Negative for Commodities Recent ECB Quantitative

More information

Exchange Traded Funds. An Introductory Guide. For professional clients only

Exchange Traded Funds. An Introductory Guide. For professional clients only Exchange Traded Funds An Introductory Guide For professional clients only Exchange-Traded Funds (ETFs) started to be used in Europe in the early 2000s but over the past few years they have grown their

More information

M&G HIGH INCOME INVESTMENT TRUST P.L.C

M&G HIGH INCOME INVESTMENT TRUST P.L.C This document is issued by M&G Securities Limited as the alternative investment fund manager (AIFM) of M&G High Income Investment Trust PLC (the "Company") solely in order to make certain information available

More information

Equity Investing Evolved Manage risk, stay invested

Equity Investing Evolved Manage risk, stay invested Equity Investing Evolved Manage risk, stay invested HSBC Buffered Strategies Are you on track to meet your retirement and investment goals? Have extreme market swings prevented you from investing? Would

More information

Launch Announcement for Warrants to be issued by

Launch Announcement for Warrants to be issued by This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Warrants described below. Hong Kong Exchanges and Clearing

More information

Japanese bonds in a negative interest rate environment

Japanese bonds in a negative interest rate environment Japanese bonds in a negative interest rate environment On January 29, 2016, the Bank of Japan (BoJ) introduced "Quantitative and Qualitative Monetary Easing with Negative Interest Rate". The decision initiated

More information

DIVERSIFIED GROWTH FUNDS: DO THEY MEET EXPECTATIONS?

DIVERSIFIED GROWTH FUNDS: DO THEY MEET EXPECTATIONS? March 2015 DIVERSIFIED GROWTH FUNDS: DO THEY MEET EXPECTATIONS? In this paper, we ask two questions: Do DGFs meet their objectives? Is their performance good enough? What is a Diversified Growth Fund?

More information

The Royal Bank of Scotland plc

The Royal Bank of Scotland plc 5 October 2011 The Royal Bank of Scotland plc (Incorporated in Scotland with limited liability under the Companies Acts 1948 to 1980, registered number SCO90312) 200 Put Warrants linked to the performance

More information

db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus

db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to db x-trackers S&P 500 UCITS ETF (DR) (the Fund ), a sub-fund of Concept Fund Solutions

More information

New Issuer: China Merchants Land Limited

New Issuer: China Merchants Land Limited New Issuer: China Merchants Land Limited China Merchants Land has picked Bank of American Merrill Lynch, DBS, Industrial and Commercial Bank of China as joint global co-ordinators, joint lead managers

More information

High Yield Bonds A Primer

High Yield Bonds A Primer High Yield Bonds A Primer With our extensive history in the Canadian credit market dating back to the Income Trust period, our portfolio managers believe that there is considerable merit in including select

More information

Order book for Retail Bonds

Order book for Retail Bonds Order book for Retail Bonds Secondary Market Liquidity Report March 2016 Page 1 Order book for Retail Bonds Primary Issuance Page 2 Millions ORB primary issuance snapshot There have been 54 dedicated ORB

More information

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income? Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income

More information

Spectrum Insights. Time to float. Why invest in corporate bonds? - Value

Spectrum Insights. Time to float. Why invest in corporate bonds? - Value Spectrum Insights Damien Wood, Principal JUNE 25, 2015 Time to float Investing in floating rate bonds as opposed to fixed rate bonds helps protect bond investors from price slumps. Spectrum expects that

More information

Options Strategy for Professional Clients

Options Strategy for Professional Clients Options Strategy for Professional Clients Optimise is an options strategy which uses market volatility selling FTSE100 cash settled options contracts. Premium is taken from the market on options that are

More information

High yield bonds. US senior loans update. required disclosures begin on page 4.

High yield bonds. US senior loans update. required disclosures begin on page 4. CIO WM Research 11 August 20 High yield bonds US senior loans update Barry McAlinden, CFA, strategist, UBS FS barry.mcalinden@ubs.com, +1 212 713 3261 Philipp Schöttler, strategist, UBS AG US loans experienced

More information

Greg Flower Wealth Management. Discretionary Wealth Management

Greg Flower Wealth Management. Discretionary Wealth Management Greg Flower Wealth Management Discretionary Wealth Management Disclaimer The information included in this document, including any opinion, is based on various sources believed to be reliable, but its accuracy

More information

Property Investment. Why Invest in Property?

Property Investment. Why Invest in Property? Property Investment Why Invest in Property? In every person s life, there will come a point where he has to make choices, and one of which is an investment choice. Where should his hard earned money be

More information

Launch Announcement for Callable Bull/Bear Contracts ("CBBCs") to be issued by

Launch Announcement for Callable Bull/Bear Contracts (CBBCs) to be issued by This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the CBBCs described below. Hong Kong Exchanges and Clearing

More information

Introduction to Convertible Debentures

Introduction to Convertible Debentures Introduction to Convertible Debentures Intro to Convertible Debentures March, 2009 Convertible debentures are hybrid securities which offer advantages of both bonds and equities. Like ordinary bonds they

More information

Contents. ETF Reference Guide Page 2 The Stock Exchange of Mauritius

Contents. ETF Reference Guide Page 2 The Stock Exchange of Mauritius ETF Reference Guide Contents 1. Background 04 2. Introduction to Exchange Traded Funds 05 What are Exchange Traded Funds Why invest in Exchange Traded Funds as an alternative to other similar investments?

More information

Crafting a Forward Looking Investment Portfolio

Crafting a Forward Looking Investment Portfolio BOURSE SECURITIES LIMITED February 15th, 2016 Crafting a Forward Looking Investment Portfolio This week, we at Bourse evaluate the investment considerations and opportunities having looked previously at

More information

9 Questions Every ETF Investor Should Ask Before Investing

9 Questions Every ETF Investor Should Ask Before Investing 9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment products like mutual funds, closed-end funds,

More information

JPMorgan Income & Capital Trust plc Annual General Meeting. 2 July 2015

JPMorgan Income & Capital Trust plc Annual General Meeting. 2 July 2015 JPMorgan Income & Capital Trust plc Annual General Meeting 2 July 2015 Agenda JPMorgan Income & Capital Trust plc performance Portfolio positioning Outlook 1 Performance review Financial year to 28 February

More information

6 % Information booklet. Retail Bond Offer fi xed to December 2020. The Paragon Group of Companies PLC. www.paragon-group.co.uk/group/retail-bond

6 % Information booklet. Retail Bond Offer fi xed to December 2020. The Paragon Group of Companies PLC. www.paragon-group.co.uk/group/retail-bond Information booklet The Paragon Group of Companies PLC 13 February 2013 6 % Retail Bond Offer fi xed to December 2020 Lead Manager and Offeror Canaccord Genuity Limited Authorised Offerors Barclays Stockbrokers

More information

Transact Guide to Investment Risks

Transact Guide to Investment Risks Integrated Financial Arrangements plc Transact Guide to Investment Risks Integrated Financial Arrangements plc A firm authorised and regulated by the Financial Conduct Authority INTRODUCTION Transact operates

More information

Investors on the JSE Limited have recently been able to invest in an exciting new type of financial product known as Share Instalments.

Investors on the JSE Limited have recently been able to invest in an exciting new type of financial product known as Share Instalments. Instalments pic Investors on the JSE Limited have recently been able to invest in an exciting new type of financial product known as Instalments. What are Instalments? Instalments are instruments that

More information

Magellan Global Equities Fund An Innovative Vehicle for Global Equity Investors

Magellan Global Equities Fund An Innovative Vehicle for Global Equity Investors Magellan Global Equities Fund An Innovative Vehicle for Global Equity Investors March 2015 Important Information This presentation ( Presentation ) has been produced by Magellan Asset Management Limited

More information

Market Linked Certificates of Deposit

Market Linked Certificates of Deposit Market Linked Certificates of Deposit This material was prepared by Wells Fargo Securities, LLC, a registered brokerdealer and separate non-bank affiliate of Wells Fargo & Company. This material is not

More information

6-Year USD Call Spread Notes on the 5 Year USD Swap Rate

6-Year USD Call Spread Notes on the 5 Year USD Swap Rate 6-Year USD Call Spread Notes on the 5 Year USD Swap Rate - NON-US INVESTORS ONLY - - PRIVATE PLACEMENT ONLY - NO PUBLIC DISTRIBUTION - Final Termsheet as of November 2, 2015 (Version 2.00) All material

More information

Fixed Income Investing: The Overview

Fixed Income Investing: The Overview Income Investing: The Overview September 2014 INTRODUCTION Over the past few years, many of the new ideas that institutional investors have introduced into their portfolios have stemmed from the fixed

More information

Positioning Fixed Income for Rising Interest Rates

Positioning Fixed Income for Rising Interest Rates Positioning Fixed Income for Rising Interest Rates Investment Case: High-Yield Bonds Hedged with U.S. Treasuries Market Vectors Investment Grade Floating Rate ETF Designed to hedge the risk of rising interest

More information

Fasano Associates 7 th Annual Conference. Longevity Risk Protection. Cormac Treanor Vice President Wilton Re. October 18, 2010

Fasano Associates 7 th Annual Conference. Longevity Risk Protection. Cormac Treanor Vice President Wilton Re. October 18, 2010 Fasano Associates 7 th Annual Conference Longevity Risk Protection October 18, 2010 Cormac Treanor Vice President Wilton Re Focus of Presentation Extension Risk Protection in the Senior Life Settlements

More information

Guggenheim Investments. European High-Yield and Bank Loan Market Overview

Guggenheim Investments. European High-Yield and Bank Loan Market Overview Guggenheim Investments European High-Yield and Bank Loan Market Overview August 2015 European High-Yield & Bank Loan Market Overview Please see disclosures and legal notice at end of document. 2 August

More information

Ground rules. FTSE TMX Canada Maturity Corporate Bond Index Series v1.7

Ground rules. FTSE TMX Canada Maturity Corporate Bond Index Series v1.7 Ground rules FTSE TMX Canada Maturity Corporate Bond Index Series v1.7 ftserussell.com October 2015 Contents 1.0 Introduction... 3 2.0 Management responsibilities... 6 3.0 Eligibility criteria... 7 4.0

More information

Series 16. NBC Deposit Notes NBC Global Companies Deposit Notes. On or about February 12, 2024 FUNDSERV CODE: NBC1485

Series 16. NBC Deposit Notes NBC Global Companies Deposit Notes. On or about February 12, 2024 FUNDSERV CODE: NBC1485 NBC Deposit Notes NBC Global Companies Deposit Notes Series 16 SALES PERIOD: January 7, 2016 to February 4, 2016 at 4 p.m. ISSUANCE DATE: On or about February 11, 2016 VALUATION DATE: On or about February

More information

Structured products. Precision tools. A guide for private investors.

Structured products. Precision tools. A guide for private investors. Structured products Precision tools. A guide for private investors. Structured products are listed securities available for trading on London Stock Exchange s regulated Main Market. Structured products

More information

Addressing the Liquidity Challenge Corporate Bond New Issue Standardization

Addressing the Liquidity Challenge Corporate Bond New Issue Standardization Addressing the Liquidity Challenge Corporate Bond New Issue Standardization Joanne T. Medero Managing Director March 20, 2015 The challenge deteriorating liquidity in the corporate bond market Challenged

More information

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong Important Risk Disclosure for PAIF: ABF Pan Asia Bond Index Fund ( PAIF ) is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit

More information

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to Derivatives»

More information

CGWM Total Return Bond Fund

CGWM Total Return Bond Fund To us there are no foreign markets. TM CGWM Total Return Bond Fund Supplement dated 6 October 2015 to the Prospectus dated 6 October 2015 This Supplement contains specific information in relation to the

More information

An Investor s Guide to the US Treasury Market

An Investor s Guide to the US Treasury Market an INVESTOR S GUIDE TO THE US TreASURY MARKET february 2014 An Investor s Guide to the US Treasury Market summary in brief Many investors concerned with principal preservation turn to US Treasury securities

More information

Treasury Bonds directly makes the Sub-Fund riskier than traditional exchange traded funds investing in A-Shares or in markets other than the PRC.

Treasury Bonds directly makes the Sub-Fund riskier than traditional exchange traded funds investing in A-Shares or in markets other than the PRC. IMMEDIATE RELEASE IMPORTANT NOTES 1. E Fund Citi Chinese Government Bond 5-10 Years Index ETF (the Sub-Fund ) is a passively managed exchange traded fund ( ETF ) and is traded on the Stock Exchange of

More information

EXCHANGE TRADED PRODUCTS (ETFs & ETNs)

EXCHANGE TRADED PRODUCTS (ETFs & ETNs) EXCHANGE TRADED PRODUCTS (ETFs & ETNs) Now, for the first time ever, all South Africa s ETFs & ETNs on a single website www.etfsa.co.za Everything you need to know about ETFs and ETNs Transact online all

More information

H1 2012 Earnings Presentation. BRSA Bank Only

H1 2012 Earnings Presentation. BRSA Bank Only BRSA Bank Only Macro Outlook Q1 GDP growth at 3.2%, mostly backed by net exports. Budget deficit was TRY 6.7 billion in H1 12, one third of Latest GDP figure is supportive of the soft landing the government

More information

UBS AG ANNOUNCEMENT. Proposed Issue of 15,000,000 European Style Index Put Warrants relating to the Hang Seng Index

UBS AG ANNOUNCEMENT. Proposed Issue of 15,000,000 European Style Index Put Warrants relating to the Hang Seng Index UBS AG (Incorporated with limited liability in Switzerland) ANNOUNCEMENT Proposed Issue of 15,000,000 European Style Index Put Warrants relating to the Hang Seng Index Introduction UBS AG (the Issuer )

More information

- Short term notes (bonds) Maturities of 1-4 years - Medium-term notes/bonds Maturities of 5-10 years - Long-term bonds Maturities of 10-30 years

- Short term notes (bonds) Maturities of 1-4 years - Medium-term notes/bonds Maturities of 5-10 years - Long-term bonds Maturities of 10-30 years Contents 1. What Is A Bond? 2. Who Issues Bonds? Government Bonds Corporate Bonds 3. Basic Terms of Bonds Maturity Types of Coupon (Fixed, Floating, Zero Coupon) Redemption Seniority Price Yield The Relation

More information

Credit Suisse Portfolio Solutions. Personalized strategies to help you grow, preserve, and use your wealth

Credit Suisse Portfolio Solutions. Personalized strategies to help you grow, preserve, and use your wealth Credit Suisse Portfolio Solutions Personalized strategies to help you grow, preserve, and use your wealth 1 Credit Suisse Portfolio Solutions Personalized strategies to help you grow, preserve, and use

More information

db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus

db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to the db x-trackers MSCI World Telecom Services Index UCITS

More information

INVESTMENTS FOR LIVING. Introducing Lifestyle Portfolios

INVESTMENTS FOR LIVING. Introducing Lifestyle Portfolios INVESTMENTS FOR LIVING Introducing Lifestyle Portfolios I WANT INVESTMENTS THAT GIVE ME FLEXIBILITY AND CHOICE Lifestyle Portfolios from Lloyds Bank International help you keep pace with the ever-changing

More information

International Brokerage. Topics Introduction Important Information Key Terminologies Account Opening System Specifications Disclosures

International Brokerage. Topics Introduction Important Information Key Terminologies Account Opening System Specifications Disclosures International Brokerage Topics Introduction Important Information Key Terminologies Account Opening System Specifications Disclosures Introduction Securities Brokerage at Citibank N.A., UAE Branch is a

More information

Floating-Rate Securities

Floating-Rate Securities Floating-Rate Securities A floating-rate security, or floater, is a debt security whose coupon rate is reset at designated dates and is based on the value of a designated reference rate. - Handbook of

More information

Understanding Bonds. ASX. The Australian Marketplace

Understanding Bonds. ASX. The Australian Marketplace Understanding Bonds ASX. The Australian Marketplace Disclaimer of Liability Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent

More information

Beginner s Guide to Bonds

Beginner s Guide to Bonds Beginner s Guide to Bonds Chapter 1.1-1.4 www.trader.ge Bonds Chapter 1.1 / A Basic Description Welcome to this first chapter on Bonds which will give a brief introduction to the history of bonds and explain

More information

Preparing Your Fixed Income Portfolio for Rising Interest Rates

Preparing Your Fixed Income Portfolio for Rising Interest Rates fixed income portfolio august 2013 2 Bond Fundamentals 3 Products to Hedge Interest Rates 4 Strategies to Mitigate the Effect of Rising Rates 6 Investment Considerations Preparing Your Fixed Income Portfolio

More information

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment

More information

R*Shares Long Term Gilt ETF (An Open Ended Index Exchange Traded Fund)

R*Shares Long Term Gilt ETF (An Open Ended Index Exchange Traded Fund) R*Shares Long Term Gilt ETF (An Open Ended Index Exchange Traded Fund) Product Label: R*Shares Long Term ETF Offer for Sale of Units at Rs.10/- (On allotment, the value of each unit of the Scheme would

More information

MLC MasterKey Unit Trust Product Disclosure Statement (PDS)

MLC MasterKey Unit Trust Product Disclosure Statement (PDS) MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take

More information

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst

NPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,

More information

CGWM Bond Fund. Supplement dated 11 November 2014 to the Prospectus dated 11 November 2014. Investment Objective. Investment Policy.

CGWM Bond Fund. Supplement dated 11 November 2014 to the Prospectus dated 11 November 2014. Investment Objective. Investment Policy. CGWM Bond Fund To us there are no foreign markets. TM Supplement dated 11 November 2014 to the Prospectus dated 11 November 2014 This Supplement contains specific information in relation to the CGWM Bond

More information

A guide to investing in hybrid securities

A guide to investing in hybrid securities A guide to investing in hybrid securities Before you make an investment decision, it is important to review your financial situation, investment objectives, risk tolerance, time horizon, diversification

More information

University of Reading Pension Scheme

University of Reading Pension Scheme Human Resources University of Reading Pension Scheme Investing for Retirement Introduction After deciding how much to save for retirement, where to invest the contributions that you and the University

More information

Eagle Asset Management. REIT manager. Analyst Presentation. Acquisition of 3 Floors of Citibank Tower 4Q 2006 Version 1.0. Eagle Asset Management

Eagle Asset Management. REIT manager. Analyst Presentation. Acquisition of 3 Floors of Citibank Tower 4Q 2006 Version 1.0. Eagle Asset Management REIT manager Analyst Presentation Acquisition of 3 Floors of Citibank Tower 4Q 2006 Version 1.0 1 Important Notice This document may contain information which is proprietary, confidential and/or legally

More information

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference.

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference. Investment Bond Funds key features. This is an important document. Please keep it safe for future reference. 2 WHAT ARE THE FUNDS KEY FEATURES? This document is part of the information we provide you to

More information

Portfolio Bonds. Balanced Growth

Portfolio Bonds. Balanced Growth Portfolio Bonds Balanced Growth SALE PERIOD: 1 June 4 September 2015 INVESTMENT PERIOD: About 6 years REFERENCE ASSETS: 3 equity indices which represent the US, European and Pan Asian markets Portfolio

More information

ICE U.S. Treasury Bond Index Series TM Methodology June 30, 2016

ICE U.S. Treasury Bond Index Series TM Methodology June 30, 2016 ICE U.S. Treasury Bond Index Series TM Methodology June 30, 2016 Contents 1. Introduction... 3 2. Index Eligibility Criteria and Inclusion Rules... 3 Maturity... 3 Size... 4 Coupon... 4 Currency... 4 Bond

More information

The Hongkong and Shanghai Banking Corporation Limited (incorporated in Hong Kong with limited liability under the Companies Ordinance of Hong Kong)

The Hongkong and Shanghai Banking Corporation Limited (incorporated in Hong Kong with limited liability under the Companies Ordinance of Hong Kong) This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the CBBCs described below. Hong Kong Exchanges and Clearing

More information

McKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment

McKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment March 25, 2014 McKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment This paper analyzes the historic performance of the McKinley Capital Management, LLC

More information

Perspectives September

Perspectives September Perspectives September 2013 Quantitative Research Option Modeling for Leveraged Finance Part I Bjorn Flesaker Managing Director and Head of Quantitative Research Prudential Fixed Income Juan Suris Vice

More information

Invesco Funds Series 1-5 Consolidated Prospectus

Invesco Funds Series 1-5 Consolidated Prospectus Invesco Funds Series 1-5 Consolidated Prospectus 26 November 2010 Invesco Funds Series 1 Invesco Funds Series 2 Invesco Funds Series 3 Invesco Funds Series 4 Invesco Funds Series 5 Each an open-ended umbrella

More information

Fixed income benchmarks Time to think again?

Fixed income benchmarks Time to think again? February 2013 Fixed income benchmarks Time to think again? There are a number of drawbacks to the use of traditional fixed income benchmarks. As a consequence, some fixed income managers are reappraising

More information

Welcome to ORB. Website tutorial for retail investors

Welcome to ORB. Website tutorial for retail investors Welcome to ORB Website tutorial for retail investors ORB Retail bonds page http://www.londonstockexchange.com/exchange/prices-and-markets/retail-bonds/retail-bonds-search.html Search You can filter search

More information

Understanding inflation-linked bonds and indices

Understanding inflation-linked bonds and indices Understanding inflation-linked bonds and indices We believe in giving you the fundamental building blocks you need to construct diversified, risk-adjusted, goal-oriented portfolios for your clients. Inflation-linked

More information

Click Here to Buy the Tutorial

Click Here to Buy the Tutorial FIN 534 Week 4 Quiz 3 (Str) Click Here to Buy the Tutorial http://www.tutorialoutlet.com/fin-534/fin-534-week-4-quiz-3- str/ For more course tutorials visit www.tutorialoutlet.com Which of the following

More information

CIO Flash Revisions to our 2016 global outlook Jan 25, 2016

CIO Flash Revisions to our 2016 global outlook Jan 25, 2016 CIO Flash Revisions to our global outlook Jan 25, +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH The global macro picture:

More information

Individual Savings Account Fund menu

Individual Savings Account Fund menu Individual Savings Account Fund menu This fund menu lists all the funds available on our Individual Savings Account (ISA). Your financial adviser will be able to help you choose the right combination of

More information

Commodities. Precious metals as an asset class. April 2011. What qualifies as an asset class? What makes commodities an asset class?

Commodities. Precious metals as an asset class. April 2011. What qualifies as an asset class? What makes commodities an asset class? Commodities Precious metals as an asset class April 2011 What qualifies as an asset class? Broadly speaking, an asset class is simply a grouping of assets that possess similar characteristics. Defining

More information

Getting Started in Shares. Brought to you by: JSE Limited & Online Share Trading

Getting Started in Shares. Brought to you by: JSE Limited & Online Share Trading Getting Started in Shares Brought to you by: JSE Limited & Online Share Trading Topics of discussion What is investing Asset classes Understanding the share market Why the share market Risk Develop an

More information

COMMODITY STRUCTURED NOTES Introducing The World s Oldest Asset Class... For Today s Investors

COMMODITY STRUCTURED NOTES Introducing The World s Oldest Asset Class... For Today s Investors COMMODITY STRUCTURED NOTES Introducing The World s Oldest Asset Class... For Today s Investors Who can benefit from Commodity Structured Notes? Corporate or commercial clients looking to hedge commodity

More information

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day *

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day * APRIL 2016 This statement provides you with key information about Income Partners RMB Bond Fund (the Sub-Fund ). This statement is a part of the offering document and must be read in conjunction with the

More information

A Case for Dividend Investing

A Case for Dividend Investing A Case for Dividend Investing Many investors may be surprised to learn that dividends paid by companies have accounted for 45% of the total return for Australian equities over the last 10 years 1. Buying

More information

SOCIETE GENERALE STRUCTURED PRODUCTS

SOCIETE GENERALE STRUCTURED PRODUCTS SOCIETE GENERALE STRUCTURED PRODUCTS Ben Thompson, Societe Generale Listed Products Thursday 31 st January 2013 RISK WARNING The following products are suitable for sophisticated retail and professional

More information