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IDAD launch new tranche of the BNP UK Callable Supertracker Plan July 2022
IDAD have launched a new tranche of the BNP UK Callable Supertracker Plan  Issue 4 – July 2022.  Please find below a summary of the product, together with a link to obtain further details, along with the Brochure and Key Information Document.

About BNP Paribas :  BNP Paribas SA attracts deposits and offers commercial, retail, investment, and private and corporate banking services. The Bank also provides asset management and investment advisory services to institutions and individuals in Europe, the United States, Asia, and the emerging markets.

Source: Bloomberg 13.05.2022

IDAD UK Callable Supertracker Plan – July 2022Investment Term: A 4 year 1 week term. However the plan has the potential to mature early (callable) from the first observation date at end of year 1 and quarterly thereafter.

Participation Rate: 500% Participation in the growth of the FTSE ™100 Index at maturity if the Issuing Bank does not ‘call’ the product prior to its maturity date.

Payment Rate: 10% per annum (2.50% per quarter) paid if the Issuing bank ‘calls’ the product on any observation date prior to its maturity date.

Issuer: BNP Paribas Issuance B.V.

How the Investment works   

This is a 4 year 1 week Plan based on the performance of the FTSE ™100 Index.  The Plan is constructed to offer a potential return of 10.00% per annum to the redemption date if the Issuer calls the investment early (please refer to the ‘Callable Feature’ below), or 500% participation in any growth of the FTSE ™100 Index at maturity.

If the Plan is not called early, at maturity, the investor receives a return of 500% of any positive growth in the FTSE ™100 Index.  For example, at maturity, if the FTSE ™100 Index had risen 10% from the Initial Index Level, the investor will receive 100% of their investment back plus a 50% growth payment (10% X 500%).

The Callable Feature, what is this and when may this occur?

On each Quarterly Observation Date, from the 12 months after issue date, the Issuer has the option to ‘call’ the Plan at their discretion.  This means the Plan will be redeemed at that point and investors will receive their Initial Capital into the Plan, together with the fixed rate of return detailed above.  For example, if the Issuer called the Plan on the second anniversary, the investor would receive 100% of their Initial Capital plus a 20.00% return.

The callable feature provides the Issuer with the ability to redeem the Plan early on any Callable Observation Date, details of which can be found in the brochure.

Click here for more details of the IDAD UK Callable Supertracker Plan – July 2022
Don’t Forget the Risks

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested.  Because of this, an investor is not certain to make a profit on an investment and may lose money.  Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

At the Best Price FS price point the IDAD Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.