Mariana 10:10 Plan – June 2019
The June launch of the popular Mariana 10:10 Plan has been brought forward due to the over-subscription and early closure of the May tranche.
The early closure in May was the fourth tranche in a row that has been forced to close early due to investment demand.
The Mariana 10:10 Plan – June 2019 is a ten-year plan based on the performance of the FTSE™ 100 Index. The plan has three options and is constructed to offer a potential return of 7.90% in Option 1, 10.30% in Option 2 and 12.45% in Option 3 for each year the plan runs with the possibility of early maturity and the full repayment of initial capital from the end of the plan’s second year and annually thereafter. Should the closing price of the underlying asset on an observation date be at or above the kick out trigger level, the plan will mature early, repaying initial capital plus the potential return multiplied by the number of years the plan has run.
If the plan has not already kicked out, initial capital will be repaid in full at the end of the plan’s term if on the maturity date (28th June 2029) the closing price of the underlying asset is not more than 30% below the start level. If on the maturity date the closing price of the underlying asset is less than 70% of the start level (representing a decline of more than 30% from the Start Level), your initial capital will be lost at a rate of 1% for every 1% the closing price of the underlying asset is below the start level.
Since its introduction in 2015 the 10:10 range has proven to be incredibly popular with Mariana launching continuous tranches ever since. The four tranches immediately preceding this one all closed early due to over subscriptions so early reservations are recommended.
The counterparty chosen for the Mariana 10:10 Plan – June 2019 is Citigroup Global Markets Limited (CGML). CGML is Citi’s international broker-dealer and is headquartered in London. Currently, there are branches in seven other European financial centres, including France, Ireland, Italy, Spain, Greece, Switzerland and Sweden, as well as branches in Dubai and Israel. Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. More information on Citi can be found on their website www.citigroup.com
Established in 2009, Mariana was founded as an institutional brokerage firm. Building on this foundation the company has strategically developed to offer a wide range of complimentary services around the globe with further offices New York, San Francisco, Geneva, Singapore & Melbourne. In 2013 Mariana branched out into the retail market with their first structured product which was developed internally with their market strategy team. Over the following years Mariana has established a reputation as a leading global independent structured products provider raising over £830 million across their range.
Don’t Forget the Risks
Key Points to consider:
1. The product continues to be available in three formats all of which are linked exclusively to the FTSE 100 Index.
2. All options provide the opportunity to achieve attractive returns in a controlled/pre-defined manner as part of a diversified & well-balanced portfolio in uncertain & flat market conditions. If you assume a start level of the FTSE 100 at Strike similar to where the market is currently (7350), then with Option 3 you can achieve returns of 12.45%pa with the need only for the Index at the second or any future anniversary to be at 7718 or above for this to happen. Alternatively use or combine with the Defensive Option 1 where ultimately from the same starting point a return of 7.9% pa can be achieved with the Index reducing over time as low as 6064 for the Kick Out/Autocall to happen. When the Plan Kicks Out/Autocalls all returns are of course accompanied by the full return of the original Invested Capital.
3. The Plan Strike date for all Options is on the 28th June.
4. Also, worth remembering that the longer the Plan runs in practice, the higher the equivalent Market would need to get in order for a Clients main portfolio to match the returns on offer here.
5. The traditional Step-Down version of the FTSE 100 linked Plan – Option 1 enjoys the enviable track record of a ‘perfect’ back-test underpinning it. Quite simply from every possible start date since the inception of the FTSE 100 in January 1984 it would have always worked for your Clients.
6. The Back-testing of structured products is a precise science – as the actual terms of the strategy, which are defined by contract, are used with the actual performance of the index. (these are not ‘hopes and aims’, as is the case with active fund management, or even passive, where tracking error, charges, etc., have a bearing: structured products are legal obligations on the issuer to deliver precisely what they have stated the terms to be).
7. One of the key advantages of the 10:10 Plan continues to be that it has been designed to combine the benefits of short term annual kick-out potential, from the 2nd anniversary, with a longer investment term to maximise the annual opportunities for successful kick out and the scale of snowballing / accumulation of potential coupons before maturity.
All 3 Plan options for this tranche are underwritten with Citigroup as the Issuer & Counterparty. (click the link to read the Brochure for full details – https://gallery.mailchimp.com/03161d6ca4cecca6092a0798c/files/c5ebd7f4-b1b8-49f4-9b18-7b3420ba5e06/Mariana_10_10_Plan_June_2019_Brochure.pdf).
Headline details of the product options are as follows. (Refer to the Brochure for more information on the Plan). Please let us know if you would like us to forward the KID documents.
The overall Product design, coupled with both the impressive Back-testing record & the current market environment, make this a compelling & powerful diversification tool for investors to consider. The plans are available via our website – https://www.bestpricefs.co.uk/mariana-capital-structured-products/.
As always, we must point out that attracting an investor’s attention to the product in question is not providing ‘Advice’ to invest. Gathering advice is always specific to the needs of the individual investor. If you have a need for advice, simply get in touch.
Best Price FS Team
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