Our Investment Ideas: 2024
Semiconductors, the Backbone of Global Innovation
November 2024
Semiconductors are the foundation of modern industries, driving innovation and economic growth. In 2023, the global semiconductor market generated $500 billion in revenue and is projected to grow at a robust CAGR of 11.8%, reaching $981 billion by 2029.
These essential components power electric vehicles, smart electronics, computing devices, and 5G networks, making them indispensable across industries.
Governments worldwide are investing heavily to strengthen semiconductor R&D and manufacturing, with initiatives like the U.S. CHIPS Act ($280B), the EU's €43B Chips Act, and China's $48B Big Fund aimed at enhancing supply chain resilience and fostering innovation.
Meanwhile, surging demand and geopolitical tensions have driven unprecedented mergers and acquisitions, as companies secure advanced technologies and accelerate innovation.
For investors, the iShares Semiconductor ETF offers diversified exposure to leading companies in the semiconductor sector. Delivering a 24% annualized return over five years, significantly outperforming the S&P 500’s 14%, it provides strong growth potential.
Nuclear Energy: Powering a Sustainable Future
November 2024
Nuclear energy is one of the cleanest sources of power available today, emitting significantly less carbon than solar, biomass, geothermal, and hydropower, and matching the carbon footprint of wind.
While this sector has faced significant scrutiny due to past incidents such as the Chernobyl and Fukushima disasters, recent technological advancements in reactor design and nuclear waste management have significantly improved the safety and sustainability of nuclear production.
It offers a stable, diversified energy source that reduces reliance on imported fossil fuels while providing consistent baseload power to complement intermittent renewable sources. This stability enhances energy security and ensures resilience in the face of geopolitical disruptions.
Since COP 28, 25 countries have committed to tripling nuclear capacity by 2050. Governments worldwide are passing legislation and funding to support next-generation reactors, reflecting a coordinated push toward a nuclear-powered future.
As AI grows, global electricity consumption is set to rise. Tech giants like Google and Microsoft are already turning to nuclear to power energy-hungry data centers needed for AI. Nuclear offers a clean, reliable solution to meet these demands, making it vital for a sustainable digital future.
Harnessing the Power of 5G and Communication Services
October 2024
The global 5G market is poised for remarkable expansion, projected to grow at a compound annual growth rate (CAGR) of approximately 16%. This growth is fueled by the widespread adoption of 5G-enabled devices, surging demand for high-speed connectivity, advancements in IoT applications, and significant government investments in network infrastructure.
5G technology’s economic impact cannot be overstated—it is forecasted to contribute an estimated US$1.3 trillion to global GDP by 2030. Key industries such as healthcare, smart utilities, and industrial manufacturing are already reaping the benefits of enhanced connectivity, signaling transformative shifts across multiple sectors.
The adoption of 5G is progressing at an unprecedented pace, growing from just 12.69 million subscriptions in 2019 to an expected 4.37 billion by 2027. This trajectory underscores the rapid initial uptake, mid-term acceleration, and eventual ubiquity of 5G technology worldwide.
Meanwhile, the Communication Services sector has solidified its position as a key growth driver. In 2023, it delivered an impressive 54.4% return, emerging as one of the top-performing sectors. Furthermore, its earnings are projected to grow by 21% in 2024, positioning the sector as a leader in driving market performance.
For access to the full presentation or more details, please reach out to our team.
Memory Coupon Notes on Trump Baskets
October 2024
Following Donald Trump's recent election victory, several policy shifts are anticipated that could significantly impact various sectors, notably artificial intelligence (AI), oil, and financial services.
For AI, regulatory restrictions may be lifted, fostering innovation and potentially boosting growth for tech companies. In energy, an emphasis on increased domestic oil production - "drill, baby, drill" - and relaxed environmental regulations could enhance profitability for oil and gas producers. The financial sector is also poised to benefit from reduced compliance costs and expanded lending opportunities, making these industries attractive for investors.
The chosen structure to play this theme is the memory coupon note. It is a structured product offering attractive conditional coupon payments with high capital protection, ideal for risk-averse investors seeking enhanced yields over traditional fixed income. Unlike most revenue products that risk the principal, this note places risk on coupon payments, introducing opportunity cost rather than capital risk.
Coupons are paid semi-annually if the underlying asset or index meets a performance barrier. If not, a “memory” feature allows missed coupons to be recovered in future periods if conditions improve, giving flexibility and reducing the impact of temporary underperformance.
For access to the full presentation or more details, please reach out to our team.
Robotics & Automation - Driving Future Growth
September 2024
The global robotics market is expected to grow at a CAGR of 15% over the next 9 Years. This market was valued at approximately $80 billion in 2023 and is projected to exceed $280 billion by 2032. This growth is and will be driven by rapid advancements in AI, machine learning, and the growing demand for automation. As technology progresses, robotics is set to transform various sectors, making it an exciting area for forward-looking investments.
With aging populations and increasing labor shortages, countries like China, Japan, and South Korea are turning to robotics to stay competitive. Simultaneously, North America and Europe are expanding automation into healthcare, logistics, and customer service, recognizing robotics as a critical solution for productivity and service enhancement.
Robotics applications are revolutionizing healthcare through surgical and rehabilitation robots, optimizing manufacturing and logistics with faster production, and reshaping customer experience in retail and hospitality. Additionally, autonomous equipment is addressing labor shortages and food supply challenges in agriculture, showcasing robotics' diverse utility across industries.
Falling production costs further bolster this growth. As sensor, processor, and battery costs decline, robotics is becoming increasingly accessible. Prices of industrial robots have halved from 2011 to 2022 and are expected to halve again by 2025, paving the way for widespread adoption.
For investors, the robotics sector offers promising opportunities. In the U.S., Robotics & Automation ETFs gained the strongest attraction in 2023. The iShares Automation & Robotics UCITS ETF, for example, provides diversified exposure to innovative leaders in robotics across various industries and regions, balancing growth potential with risk management.
For access to the full presentation or more details, please reach out to our team.
High Dividend Stocks - Strong Demand Expected
September 2024
A vast majority of central banks have started their interest rate cutting cycles and the market is expecting 6 more rate cuts in the US. When interest rates decline, the yields on bonds and other fixed-income securities fall as well, making high-dividend stocks more attractive to income-seeking investors. With reduced income from traditional safe-haven assets, investors often turn to dividend-paying stocks for higher returns.
Additionally, financial markets have been experiencing spikes in volatility over the past few months, being due to the unwinding of the Yen carry-trade, the US elections or some disappointing economic prints. This uncertainty makes established companies with stable cash flows more attractive as investors seek to mitigate potential risks.
The recent rise observed in US yields is likely associated with an increased probability of a Donald Trump victory. Indeed, the market expects a wider fiscal deficit under the republican candidate, which would revive inflationary pressures. If inflation proves to be stickier than expected and growth remains moderate, established companies with strong pricing power (typically found among high-dividend payers) should fare better than growth stocks due to their ability to pass increased costs onto customers without experiencing a drop in demand.
The selected underlying offers a balanced sectorial mix which mitigates concentration risk and is less correlated to the business cycle compared to the S&P 500. It also displays cheaper valuations (average P/E Ratio of 17.6 vs 28.2 for SPX), a beta of 0.85 and a distribution yield of 3.5% (vs 1.2% for SPX). This last point is crucial because the proposed product leverages the funding on the notes and dividends payment to provide a significant participation to the upside with a relatively tight cap, thus maximizing the probability to achieve attractive returns over the next few years.
For access to the full presentation or more details, please reach out to our team.
Oil - A Strategic Play Amid Supply Constraints
August 2024
As the global demand for energy continues to rise, the role of oil in supporting economic growth remains critical. However, the dynamics of the oil market are evolving, with supply constraints playing an increasingly important role in shaping price trends.
Oil inventories in critical regions such as the U.S. and Europe are at historically low levels, leaving limited buffer supply. This creates heightened vulnerability, where any supply disruptions or spikes in demand can significantly impact prices as markets struggle to secure scarce resources.
Institutional investors and traders are ramping up their positions in oil futures, reflecting strong demand for oil-related options. The skew in the market shows higher premiums for calls over puts, signaling prevailing bullish sentiment driven by supply concerns. This demand for oil-linked financial products is expected to persist as long as supply risks remain elevated.
The ongoing conflict in the Middle East, especially involving major oil producers, poses significant risks to global oil supply chains. Any disruption of shipments from key players like Saudi Arabia or Iran could trigger substantial price surges due to increased geopolitical risk.
The proposed product allows the investor to participate to the potential upside of oil prices with leverage up to the cap level and offers capital protection on the downside.
For access to the full presentation or more details, please reach out to our team.
Water - The Essential ESG Investment for Sustainable Returns
August 2024
Water is the essence of life - It fuels our bodies, nourishes our ecosystems, and powers our industries. While the Earth is covered in water, only about 3% is freshwater, which is crucial for drinking, agriculture, and sustaining ecosystems. Out of that 3%, the majority is trapped in glaciers or underground, leaving less than 1% readily accessible for human use.
As the global population grows and billions of people aspire to higher living standards, their water use expands - from more frequent showers and water-intensive diets to increased energy consumption, which relies heavily on water for cooling and production. Around 70% of freshwater withdrawals comes from agricultural production, which is set to increase significantly as more people need to be fed.
On the supply side, the availability of water is becoming more unpredictable and uneven due to climate change and shifting weather patterns, while demographic shifts and migration patterns are increasingly moving populations away from major water sources, exacerbating water scarcity in certain regions. According to the UN, global freshwater demand is predicted to exceed supply by 40% by 2030.
Already 2.2 billion people lack access to safe drinking water, while 4.2 billion people face water scarcity for at least one month each year. The fact that 80% of wastewater flows back into the ecosystem without being treated or reused highlights the urgent need to act and illustrates the significant business opportunity for companies operating in this sector.
The funding gaps for water infrastructure are estimated to require investments ranging from $6.7 trillion by 2030 to $22.6 trillion by 2050. The global water and wastewater treatment market is expected to grow at a robust CAGR of 6.5% between 2024 and 2034.
The proposed product allows investors to gain exposure to global leaders in the water and wastewater treatment industry while having their capital protected at 90%.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
The Healthcare Industry - Driving Growth and Stability
July 2024
The healthcare sector remains resilient and rapidly expanding, driven by aging populations and rising chronic diseases. Global healthcare spending is growing, with innovations in personalised medicine, digital health, and biotechnologies pushing boundaries and positioning the sector for long-term growth.
The U.S. healthcare market is highly attractive for investment due to its size, flexible pricing, and steady demand. As a non-cyclical sector, healthcare offers stability across economic cycles, making it resilient in downturns. With increasing healthcare needs, this demand is unlikely to wane, presenting strong growth opportunities for investors.
Technological advancements in pharmaceuticals, biotech, and medical devices are transforming patient care and unlocking new revenue streams. Companies like GSK, Roche, and Merck are well-positioned to capitalize on these trends. Demographic shifts, such as the global aging population, reinforce the sector’s robust long-term outlook.
Healthcare stocks are traditionally viewed as defensive, offering stability in volatile markets. GSK, Roche, and Merck have a proven track record of weathering economic storms. For the proposed note offering a 10% coupon, the S&P 500 would have to statistically experience an unprecedented 56% drop before breaching the proposed barrier level of the product —underscoring healthcare’s strength as a reliable investment in uncertain times.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
US Infrastructure - The Reindustrialization Effort
July 2024
US infrastructure investment has been falling for decades, which resulted in the US having the biggest infrastructure investment gap among the top 5 economies. Likewise, the manufacturing sector as a proportion of GDP has been shrinking as companies outsourced their production to cheaper markets.
However, various factors are now driving a reshoring effort. Supply chain constraints as a consequence of the pandemic and geopolitical conflicts highlighted the need for physically close and flexible supply chains, while escalating war threats also point towards the need for robust domestic manufacturing capacity. Addressing these weaknesses is crucial for the private and the public sector and requires infrastructure investment from both of them.
One of the most important tailwinds for the sector is the rapid development of AI as the global race for semiconductors production and the proliferation of data centres are expected to support infrastructure spending over the years to come. The pursuit of climate targets also remains an incentive to rebuild the US below-standard infrastructure.
Finding common ground between republicans and democrats is often difficult, but addressing infrastructure issues seems to be a mutual goal. In 2021, a bipartisan deal was signed to rebuild US infrastructures with a budget of $1.2 trillion. The American Society of Civil Engineers (ASCE) estimates that maintaining the current pace of investment would prevent a loss of nearly $700 billion in GDP over the next decade, while providing household and employment benefits such as $550 billion in additional disposable income and the preservation of 237,000 jobs.
The selected underlying is the largest and most liquid one to play this theme, is well diversified and presents a solid track record. It significantly outperforms the S&P 500 on an annualized basis over the past 5 years (21.6% vs 16.0%) and is up 12.3% YTD.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
NVIDIA - Time to Lock in the Gains
June 2024
Nvidia has shown a remarkable performance in 2024, with its stock price soaring over 150%, surpassing analysts' expectations. The company’s financial health is evident through its steadily increasing revenues, significant investments in R&D, and rising free cash flow. These indicators point to Nvidia’s strong foundation and its considerable potential for future growth, making it an attractive investment opportunity.
Nvidia commands a dominant 80% market share in the semiconductor industry and an impressive 98% share in data centers, driven by the growing demand for AI technologies. Market projections estimate a CAGR of over 30% by 2028, underscoring Nvidia’s solid market position. This dominance highlights the company’s stability and growth potential in a rapidly expanding market.
Nvidia is actively pursuing new growth opportunities in areas such as inference, data science, and machine learning, bolstered by the increasing adoption of cloud computing services. A significant portion of Nvidia’s recent revenue growth has been driven by its data center segment. By continuously innovating and expanding its offerings, Nvidia is well-positioned to capture new market segments and sustain its growth trajectory.
As the leader in one of the most promising industries, Nvidia is a crucial addition to any investment portfolio. Despite market concerns about its ability to consistently exceed revenue expectations and maintain strong returns following its impressive rally, Nvidia’s leading position and significant growth potential make it a valuable investment for those looking to benefit from advancements in AI and related technologies.
Our proposed investment product offers exposure to Nvidia’s growth while providing downside protection. This balanced approach mitigates uncertainties and secures gains from previous upward movements. By investing in this product, you can benefit from Nvidia’s growth prospects while enjoying a safety net that ensures a more secure and stable investment.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
US Small & Mid Caps - Time to catch up
June 2024
US Small and Mid (SMID) Caps have lagged large caps and especially big tech so far. The S&P 500 went up by 15.3% in H1 2024 whereas the Russell 2000 Index (small and mid cap stocks) finished only 1.7% higher.
While big tech is more driven by liquidity and adoption, SMID caps typically follows the business cycle. Data suggest that the business cycle has become consistent and more predictable than before, and that the economy is expected to expand over the coming months.
Earnings have been historically strong vs large caps and are currently improving. SMID caps have shown higher earnings growth than large caps over the past decade and are expected to post even better results as the economy continues to expand.
Catalyst – SMID caps are highly sensitive to interest rates. Small caps dedicate over 30% of their EBITDA to servicing debt, more than three times their large-cap peers. Recent cracks in the labour market and normalization in inflation point towards imminent rate cuts, which should improve the profitability of SMID caps and propel prices higher.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
The Luxury Way
May 2024
The luxury goods sector exhibits notable resilience and profitability even during economic downturns, attributed to the loyalty of affluent consumers and effective pricing power, with sales reaching $347 billion in 2023.
Investing in luxury goods provides significant diversification benefits and serves as a hedge against inflation, driven by strong brand identities, global expansion, and an increasing base of young, affluent consumers.
The sector is also capitalizing on technological advancements, particularly in e-commerce, which meets the demand for convenient shopping experiences. This digital shift is expected to drive sales up significantly in the sector.
Additionally, the growth potential in emerging markets, especially in Asia, is substantial, fueled by the rising middle and upper classes who view luxury goods as status symbols.
By 2030, the middle class is expected to account for 65% of the global population, further boosting luxury brand earnings and solidifying the sector as a robust and attractive investment option with long-term growth potential.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team
Yield Enhancement Opportunities with EM USD Bonds
May 2024
The world economy is in a much better state than what was predicted a few months ago. Inflation has been cooling off globally and central banks are now starting to cut interest rates to protect future economic growth.
Emerging markets are expected to present higher growth than developed markets over the next year (4.2% vs 1.8% - IMF), while displaying lower level of debt. Inflation is also not the same problem it used to be in most of these countries.
EM Bonds offer an attractive yield pickup vs US Investment Grade and present more duration and better ratings than US High Yield, which is enticing to play the rate cut scenario.
The proposed product is 100% capital guaranteed and provides leverage to the upside, which allows to maximize the potential gains on this conviction.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Safety First with Cybersecurity Investments
April 2024
While the world is going digital at an unprecedented speed, the reported cases of cyberattacks have been rising accordingly. This emphasizes the need for cybersecurity expenditures, which is why businesses have been investing heavily in this field.
AT&T's recent breach in March 2024 isn't isolated; it joins a string of significant cyberattacks, including the iPad breach in 2010 and the HBO breach in 2017, highlighting persistent security issues and the need to address them.
The rapid progress made in artificial intelligence (AI) is fuelling investor interest in cybersecurity stocks. AI is increasingly being integrated into cybersecurity solutions to enhance threat detection and response capabilities, driving optimism among investors about the sector's growth potential.
To mitigate investment risk, investors should diversify their portfolios across various cybersecurity firms to cover different threat areas and consider options such as Cybersecurity ETFs for broad sector exposure.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
A Perfect Storm for Bitcoin
April 2024
This product has been designed for investors that want to gain exposure to Bitcoin in a cautious way or lock previous gains while still participating in future potential upside.
There seems to be a perfect storm brewing for Bitcoin in 2024 as various factors should support the price of the digital asset.
These catalysts include the global liquidity cycle, presidential elections, anticipated rate cuts, the Bitcoin Halving event and the launch of spot ETFs.
Bitcoin historically exhibit low correlation with other asset classes and research shows that holding a certain exposure tends to considerably increase the Sharpe Ratio of Portfolios.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Golden Investment
March 2024
Gold presents a compelling investment opportunity driven by several key factors.
Firstly, its safe-haven appeal shines during periods of market uncertainty, offering a reliable store of value with minimal correlation to other asset classes.
Geopolitical tensions, exemplified by conflicts in regions like Ukraine-Russia and the Middle East, further bolster gold's attractiveness as a hedge against geopolitical shocks.
Moreover, the high number of elections worldwide this year will fuel political uncertainty, which is likely to amplify demand for gold as investors seek to fortify their portfolios.
On a technical aspect, recent breakouts could be a factor that suggests a strong upward trajectory for the future.
Lastly, market expectations regarding future Federal Reserve policies could catalyze further rallies in the gold market. Considering these factors, investing in gold appears promising in the current landscape.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Mexican Equities
March 2024
Near-shoring is a macro trend that has been gaining traction over the past few years. Recent supply shocks related to covid-19 and war outbreaks led companies to relocate their production closer to home, favouring stability over lower production costs.
Mexico appears to be a clear beneficiary of this trend as its improving infrastructure, qualified workforce and adequate business climate are attracting significant foreign investments, notably from the US. The escalation of the US – China trade war has also been a blessing for Mexico which gained the most US import share due to its proximity and low shipping costs.
A recent overhaul of the Mexican stock market (end of 2023) aiming to simplify the listing process is also expected to boost listing activity and make the stock market more attractive as a whole, which should in turn attract foreign capital.
Our product allows to participate to the potential upside on this theme while providing investors with a high level of capital protection. The Mexican stock market has been outperforming its emerging markets peers, developed markets and even the S&P 500 over the past 3 years and should continue to deliver strong results over the next months.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Lock-in Your Gains on the S&P500
February 2024
Since 2023, the S&P500 demonstrated exceptional performance with a total return exceeding 35%, a significant portion of which was attributed to the "Magnificent Seven."
Despite concerns regarding inflated valuations in the technology sector and potential market volatility surrounding the 2024 U.S. presidential election, the market seems to remain optimist. Major industry players are revising their year-end targets upwards, indicating the potential for further growth driven by robust earnings.
However, it's important to acknowledge the concentration risk posed by the United States' substantial weighting within the MSCI World index, which could magnify the impact of any market downturns or volatility spikes on global investment portfolios.
Our solution proposes the best of both worlds, allowing investors to lock in part of their gains on the S&P500 while still participating to the upside potential of the underlying.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
US Consumer Staples
February 2024
Our latest investment idea represents an attractive risk-reward opportunity for clients looking to navigate the climate of uncertainty in 2024.
Indeed, despite displaying much more resilience than expected, the US economy has been showing signs of a slowdown over the past months. With the S&P 500 breaking its previous all-time high and future interest rate cuts seem to be factored in, uncertainty looms over the market's direction.
The defensive features of consumer staples combined with the attractive coupon of 10% p.a. achievable through this structure allow investors to be well-positioned for almost any market scenario.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Exploring India's Potential
January 2024
India's fast-growing economy, with real GDP change projected at 6.3% in 2024, offers attractive potential for investors.
Structural reforms such as "Make in India" and "Digital India" stimulate foreign investment and foster growth. With a population in excess of one billion, India offers a huge consumer market, fuelled by rising disposable incomes and increasing urbanization.
What's more, the Indian stock market is showing strong momentum, outperforming many other global markets since 2022.
If you wish to gain access to the full presentation of the idea and our proposed product, do not hesitate to contact our team.
Japanese Equities
January 2024
Our latest investment idea provides investors with attractive potential risk-adjusted returns on one of the hottest themes of 2024.
Indeed, Japanese stocks have been on a run since last year thanks to a robust domestic economy, the return of foreign investors but above all thanks to a fundamental shift initiated by the Tokyo Stock Exchange.
Despite rising by more than 22% since early 2023, TOPIX constituents’ valuations are not stretched and present room for further upside.
If you wish to gain access to the full presentation of the idea, do not hesitate to contact our team.
Our Investment Ideas: 2023:
Turbocharge Your Portfolio
2 Years 90% K.G Note with 210% Participation and 120% Cap on Crude Oil Futures (CL.1).
Published on 31st October 2023
This product has been designed for investors that have a conviction on rising Oil Prices. Factors such as the Israel-Hamas conflict and supply constraints will most likely be the main contributors to this expected upward movement in the price of Oil. This product offers a highly leveraged upside and despite its tight cap, it offers attractive potential returns over the duration of 2 Years, whilst the investor's capital is protected at 90% at maturity.
Safeguard Your Investments While Extending Portfolio Duration
3 Years 100% K.G Note with 110% Participation and 130% Cap on iShares 20+ Year Treasury Bond ETF (TLT US).
Published on 17th October 2023
This product has been designed for investors that assign a fair probability of seeing yields heading south in the near-to-medium term on one hand, but which are worried that ongoing conflicts could fuel inflationary pressure on the other hand. The leveraged upside participation allows to maximize potential gains while the 100% capital protection comes in handy to hedge the duration play.
Structured Note on Emerging Markets Equally Weighted Basket
3 Years 100% K.G Note with 207% Participation and 120% Cap on Brazil, Mexico and India EW Basket.
Published on 15th September 2023
Our latest idea is targeted to investors that have a conviction on emerging markets. In this product we have decided to combine 3 ETFs, the iShare MSCI India, iShare MSCI Brazil and iShare MSCI Mexico. We have identified a strong past performance of our Basket, and we see this basket growing further. Our strong leverage of participation to the upside will benefit the investor strongly in this product.
Offense Wins Games, Defense Wins Championships
3 Years Autocallable EUR Note with Memory Coupons and 70% Capital Barrier on Defense WoF Basket
Published on 6th September2023
This product has been designed for investors that are seeking attractive income denominated in EUR. The defense sector has been performing remarkably well since the beginning of the war in Ukraine and is expected to maintain its positive momentum as governments allocate increasing proportions of their budgets to military spending.
The Comeback of American Banks:
3 Years 100% KG Note with 180% (or 125%) Participation and 135% Cap on WoF Basket of American Banks
Published on 29th August 2023
This product has been designed for investors that believe that the banking industry is going to see a rebound in the near future. We have seen Banks' profits being boosted by higher spreads as well as the resilience of major American banks against rising interest rates. This note will enable the investor to have an exposure to 3 big players in the U.S Market, JP Morgan, Bank of America and Wells Fargo, whilst being 100% protected from a downturn and benefiting from a leveraged upside participation.
Achieve Superior Returns With These Outperforming Stocks
3 Years 100% KG Note with 120% Participation on WoF Basket of Outperforming Stocks
Published on 16th August 2023
This product has been designed to help investors achieve superior returns with stocks that have proven their capacity to beat the S&P 500 Index. They all demonstrate sound financial health and operate in industries that present a highly positive outlook. This product presents an attractive risk-return profile as it offers full downside protection and leveraged upside participation.
Semiconductors Modernising Your Portfolio:
3 Years 100% KG Note with 100% Participation and 155% Cap on SemiConductors ETF
Published on 9th August 2023
This product has been designed to help investors benefit from the predicted rise in the global semiconductor market. Our analysis has led us to believe that the growth in this segment of the market is going to be driven by a strong rise in demand from 3 different sectors as well as a reduction in supply issues.
There Is No Need To Time The Market:
5 Years Auto-callable Note with Memory Coupons and 65% Capital Barrier on the S&P500
Published on 2nd August 2023
This product has been designed to help investors navigate the current market environment. Subject to conditions, it provides attractive yearly coupons with memory features that will be paid either at maturity or before if the product is called. This way, investors do not need to time the market as they will get paid even if the S&P 500 dips and goes back to at least 90% of its initial level. It also provides full capital protection if the underlying finishes above 65% of its initial level at maturity.
Uncertain Oil Movement:
2 Years Twin Win Product on Crude Oil's Price
Published on 24th July 2023
Considering the uncertain times in the commodities market right now and more precisely the uncertain movement of the price of oil in the coming months, we have decided to design a twin win structure to be able to benefit investors who are looking to play the oil scenario but are not too convinced on which way it is going to head in the short run.
As our personal views are more bearish, we have decided to place a rebate on the downside participation and not on the upside. To cross the barrier, the price of crude oil would have to increase by more than 27.5% in the next 24 months which is unlikely in our opinion
Shield Your Portfolio With Cybersecurity Investments:
3 Years 100% Capital Guaranteed Note with 113.4% Participation and 150% Cap on Cybersecurity WoF Basket
Published on 29th June 2023
This product has been designed to allow investors to play the popular cybersecurity theme while making sure that their capital is well protected. The cybersecurity market is poised to benefit from the proliferation of new technologies as people and organizations are facing more cyber threats than ever. The three stocks selected are industry leaders with sound fundamentals and attractive growth potential.
Adding a Silver Lining to your Portfolio:
3 Years 100% Capital Guaranteed Note with 125% Participation and 150% Cap on iShare Silver Trust ETF
Published on 22 June 2023
This product has been designed for investors that have a strong believe in Silver. Silver is used as a hedge against market downturns for numerous reasons and also is of great use in the Renewable Energy Sector which is rapidly growing. This product is 100% Capital Guaranteed and offers an amplified participation on the iShare Silver Trust ETF.
The New Route to India:
3 Years Capital Protected Note with 83% A rating ( or 140% BBB- Rating) Participation on iShare MSCI India
Published on 6 June 2023
This product is targeted to investors that have a strong believe in the Indian market. We have chosen the iShares MSCI India ETF as our underlying, which has an exposure to large and mid-sized in India. Factors such as the size of the domestic market as well as India being one of the most stable and fastest growing economies in the world, led us to believe that this product could bring great returns to investors portfolio.
Asia is Leading the Charge:
5 Years Outperformance Note with 122% Participation on Fidelity Asia Pacific Opp. Fund
Published on 29 May 2023
This product has been designed for investors that are looking for attractive potential returns outside of the US. Following a decade of growth, advanced economies are now struggling with high inflation, lofty debt and elevated interest rates. On the other hand, emerging markets and more particularly Asia should drive global growth in the coming years as their economies present a considerably better outlook.
The AI in HealthCare Revolution
3 Years Capital Protected Note with 200% Participation on AI Basket
Published on 23 May 2023
This product has been designed for investors who have a conviction that AI in the healthcare industry will grow in the near future. As seen in the recent Covid-19 period, the AI in the healthcare is no longer a luxury but a necessity for our population. This is why we have structured this product with a basket of the best performing firms in the industry.
The Great Comeback of Value
5 Years 100% Capital Protected Note with 117% Participation on Value v.s. Growth
Published on 12 May 2023
This product has been designed for investors who believe that the historical performance of value and growth is cyclical and that value stocks should outperform in the upcoming cycle following a long period of growth dominance. It allows to play the trend reversal with a full protection on the downside and a leveraged participation on the upside.
The DeDollarisation and the Strengthening of the Renminbi
3 Years 100% Capital Guaranteed Note with 175% Participation on the USD (short) and CNH (Long)
Published on 24 April 2023
We have structured a product that will take advantage of the "de-dollarization" effect as well as benefit from our forecasted appreciation of the Chinese Renminbi. This 100% Capital Guaranteed product has leveraged upside participation and will be Short USD and Long CNH.
Adding Some Green to Your Investments
3 Years 100% Capital Guaranteed Note with 165% Participation on our Renewable Energy Basket
Published on 3 April 2023
Our positive outlook on the renewable energy sector has led us to the creation of this Capital Guaranteed product, with Iberdrola and NextEra Energy being in our opinion, the two appropriate firms that will take advantage of our forecast for this market.
Fuelling your Portfolio:
3 Years Phoenix Autocall Memory on our Petroleum Basket, with 70% capital barrier and 13.76% Memory Coupon (p.a).
Published on 27 March 2023
We have designed a product that we believe will take advantage of the conditions that are set by the rising demand and the restrained supply of Petroleum.
These conditions are set to rise the price of petrol and thus benefit the companies operating in that sector.
We have chosen Exxon Mobil and Chevron Corp, two very well established companies in the sector as our underlyings.
Aurora Quantitative Arbitrage
3 Years 100% Capital Guaranteed Note with 165% Participation on our Quantitative Arbitrage Strategy
Published on 13 March 2023
Aurora Quantitative Arbitrage is our newest and most innovative product yet.
This product is supported by our proprietary long-short quantitative model and bets on the historical convergence between the SPX Index and the TLT US ETF with an expected target return of 30%
This kind of strategy can add some diversification to your portfolio
Digging for More Capital Return
3 Years 100% Capital Guaranteed Note with 140% Cap on our Mining Basket
Published on 27 February 2023
We believe that 2023 will be an interesting year for the mining industry.
We have designed a product based on 2 major companies that operate in the sector: Anglo American and Rio Tinto.
China's reopening as well as the forecasted rising demand of strategic demand over the next 5 years leads us to think that this product could be an interesting addition to investors portfolio and has the potential to offer interesting capital gain.
Who Even Cares About Where Interest Rates are Heading
Twin-Win Structure: 100% Capital Guarantee, Participation 100%,
European Barrier: 72% / 128%, Maturity: 3 years.
Currency: USD
Published on 14 February 2023
Uncertainty in the current interest rates directions can cause investors to be unsure about their investment decisions, this is why we have created a Twin Win structured product that has the advantage of playing both of the main opposite scenarios; a rise or stabilisation of inflation or the recession.
This product is based on the iShares 20+ Years ETF. We have selected the best parameters available, which will benefit the investors with barriers up to +/- 28% (equivalent to 165 bps in interest rates variation); and a 15% rebate if the barriers are exceeded.
Who Even Cares about where the S&P500 is heading
Twin-Win Structure: 108% Capital Guarantee, Participation 100%,
European Barrier: 71% / 129%, Maturity: 3 years.
Currency: USD
Published on 30 January 2023
Uncertainty in the current market conditions is a daily observation in the world of the investors. Mixed opinions on whether we are going to experience a recession or not can impact investors and their decisions.
We have structured a Twin Win product to optimise returns whilst minimising the risk factors, which should help investors gain, no matter if the S&P500 is bullish or bearish over the next 3 years.
A Potential Luxury Investment
Phoenix Memory Autocall; Coupon: 14% p.a, European Barrier: 70%, Maturity: 3 years. USD
Published on 20 January 2023
The reopening of China as well as the uptrend in Middle Eastern GDP forecast suggest that an investment in luxury stocks could be an interesting opportunity.
If you think this is the right time to invest in the industry of Luxury,
We have structured a product to take advantage of the factors that should help luxury stocks to follow an upward trend.
Lithium, a Strategic Metal
Phoenix Memory Autocall; Coupon: 19.5% p.a, European Barrier: 60%, Maturity: 3 years. USD
Published on 21 November 2022
If you think this is the right time to invest in Lithium industry,
We have structured a product to take advantage of the sharp rise of lithium price.
Indeed, the legislation of countries for the ecological transition will increase the demand for electric cars.
Secondly, the production of lithium is limited, and the demand is increasing.
The Double Market Hedge:
Twin-Win Energy: 100% Capital Guarantee, Participation 100%,
European Barrier: 60% / 130%, Maturity: 3 years. USD
Published on 19 October 2022
We believe that a capital-guaranteed twin-win product through an energy ETF is interesting in the current period of uncertainty.
This strategy allows us to hedge against two possible adverse scenarios:
-The continuous increase of inflation due to the rise of energy commodities resulting from a scenario of the war spreading in the east of Europe and OPEC's decision to cut oil production.
-A global recession that would push down the demand for energy commodities.
Hedging:
Published on 05 October 2022
We believe that there is still time to hedge due to the several factors:
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The current limits of asset diversification.
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Historically drawdowns are more frequent and deeper than investors may think.
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Controlling volatility is a key factor in a portfolio's long-term performance.
The Best Investors Convictions:
The Best of Buffett:
Phoenix Memory One Star; Autocall; Coupon: 11.5%, European Barrier: 60%, Maturity: 1 years. USD
Published on 19 September 2022
Time to invest in Warren Buffett’s 5 strongest convictions is interesting.
First, Buffett is the most respected and successful investor in history “oracle of Omaha” with an average return of 20% since 1965.
Secondly, market timing seems interesting because it respects the quote of his mentor Benjamin Graham who said: “be fearful when others are greedy and greedy when others are fearful”.
Finally, this selection of companies is a good way to protect themselves from inflation thanks to their pricing power. They can increase their prices without losing market share or margins.
Contrarian Idea:
Property Market Germany
100% Capital Guarantee Shark Note: Participation: 100%,
Barrier Up & Out:185%, Rebate: 20%, Maturity: 3 years. USD
Published on 13 September 2022
We believe that the time to invest in the German Property sector is very interesting.
Indeed, the turmoil in Europe has resulted in an overreaction by the German property sector.
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Stocks of the major property market players have shrunk by around 40% since beginning of the Ukraine crisis.
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More than half of the German population are renting their housing. This basic need will be maintained as does the income source for the underlying.
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Despite inflation and interest rates increase the need for housing is strong, housing vacancy is at 1.4%
Investment Idea:
Agricultural Commodities Super Cycle
Phoenix Memory Autocall; Coupon: 9%,
European Barrier: 60%, Maturity: 3 years. USD
Published on 02 September 2022
We believe that the time to invest in the agricultural commodities sector is very interesting.
Indeed, several factors are putting pressure on agricultural prices to continue rising.
First of all, the Ukraine war is destabilizing world production and exports for a while.
Secondly, the multiple droughts and wildfire on earth have also affected the agricultural production.
Finally, the increase in price of raw materials, of which natural gas is one of the main factors in the production of fertilizers, will support the agricultural, prices for a while longer.
Investment Idea:
Carrefour: No Smoke without Fire
Booster Note: Participation 300%; Cap 130%;
European Barrier 75%; Maturity 5 years. USD
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Published on 07 February 2022
With a potential merger & acquisition (M&A) on the horizon, we consider that the timing is very interesting to invest in Carrefour.
Auchan and Private Equity firms' potential interest in Carrefour has been consolidated with reports claiming that they would revise the cash bid in the region of €23.50.
The revised bid represents a premium of 35% which might be significant enough to get a deal done according to Citigroup Analyst.
The latest speculations are pointing towards a merger happening after the French presidential elections in April.
We designed a Booster Note strategy which offers the possibility to track the underlying's performance in the short term and leverage the performance to 300% at maturity.
Investment Idea:
Bitcoin: The new Inflation Hedge.
Twin Win Autocallable: Coupon 10%; Downside Participation 100%;
European Barrier 58%; Maturity 9 months. USD
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Published on 18 November 2021
We believe that the timing is currently interesting to invest in Bitcoin.Some big players such as JP Morgan are very bullish on Bitcoin and
expect a price target of $146,000 in the long term which represents an upside of 124% from now.
The SEC has recently given its approval to the ProShares Bitcoin Strategy ETF which reached $1 Billion in asset under management.
The arrival of the BITO ETF has now offered many possibilities in terms of derivative products and investment solutions.
That’s why, we designed a conservative product based on a Twin-Win strategy which allows our client to generate gains on the upside as well as partial protection on the downside.
Investment Idea:
Oil Super Cycle: Strikeback.
Protected Trader Leveraged: Participation 275%;
European Barrier 60%; Maturity 4Y. USD
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Published on 28 September 2021
We believe that the timing is currently very interesting to invest in West Texas Intermediate (WTI).
Indeed, the collapse of oil prices to less than $20 following the recession caused by the COVID-19 pandemic has accelerated the upcoming supply crisis.
This has resulted in a drastic reduction in capital spending by international oil companies.
On the other hand, US shale drillers are now focusing more on profitability than on growth.
All this means that current long-term oil prices are too low to encourage oil companies to invest in future oil production, which is sorely lacking.
And this has led industry professionals and Goldman Sachs to expect a future rise in oil, with a target of between $90 and $100 by next year.
Thus Trafigura, one of the largest independent oil traders, is expecting an oil price of $100 by 2022.
At the same time Goldman Sachs is raising its WTI target to $90 by the end of 2021.
Investment Idea:
China Long Term Trend Part 2: a repair strategy.
Warrant Call Up & Out : Participation 100%;
Barrier Out 130%; Rebate 5%; Cost 7,5%; Maturity 2Y. USD
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Published on 26 August 2021
We believe that in the long term it is still worthwhile to have exposure to the world's second largest economy, especially after the 26% drop from its highs.
This brings the ETF back to very conservative valuation levels compared to the rest of the world.
Here we take stock of the recent news that caused this decline and we propose a very defensive structuring in order to initiate a position or to repair an existing one.
Indeed, we should never remain passive and suffer volatility but rather use it for our advantages.
Investment Idea:
Semiconductors the new oil Part 1
Warrant Call Up & Out : Participation 100%; Barrier Out 130%; Cost 8%; Maturity 3Y. USD
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Published on 10 June 2021
We believe that it is worthwhile to position ourselves in the semiconductor sector over the long term.
The semiconductor market has entered a super cycle.
According to many estimates, the semiconductor industry's turnover is expected to more than double by 2030, from 450 billion USD to 1 trillion USD.
We have designed a very defensive strategy in 2 parts.
As we have said, the market seems to have already taken a lot of good news in the short term.
We therefore propose to take positions on a 3-year Call Up & Out warrant structuring on the semiconductor sectors via iShares PHLX Semiconductor ETF.
Indeed, this strategy will serve as a performance amplifier on the Up and Out zone and the passage of time will play in our favor while limiting the risk to the premium invested.
Investment Idea:
Commodity« Supercycle »
Protected Tracker : Participation 393%; Cap 130%; European Barrier 60%; Maturity 5 Y. USD
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Published on 17 May 2021
We believe that timing is very interesting to invest in mining companies and especially those with copper exposure.
We have designed a conservative structuring with a protected tracker.
Copper is one of the world's most versatile metals and the third most used behind iron ore and aluminum.
It's an essential component in buildings and cars, part of the money
supply, and a key material used in renewable energy.
Given that outlook, the world's biggest copper miners should be able to continue expanding their production in the coming years
Investment Idea:
PIMCO GIS Income:
100% Capital Protection & Participation; Maturity 5 Y.USD
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Published on 12 April 2021
We believe that timing is very interesting to invest in the credit market through one of the best and most reputable team in the world: PIMCO.
We have designed a very conservative structuring with a guaranteed capital and 100% participation in their star fund: PIMCO GIS INCOME (69bn$).
Investment Idea:
Emerging Market Long Term Trend:
Participation 94%; European Barrier 60%; Maturity 8 Y. USD
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Published on 16 February 2021
We believe that timing is very interesting to invest in Emerging Market to take advantage of short- and long-term factors which should allow it to outperform other equity markets.
We have designed a conservative structuring with a Booster Notes.
Investment Idea:
China Long Term Trend:
Participation 345%; Cap 115%; European Barrier 72%; Maturity 5 Y. USD
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Published on 20 January 2021
We believe that timing is very interesting to invest in China.
We have designed a conservative structuring with a outperformance certificate.
China is still underrepresented in indices and is a land of fundamental opportunities.
The country is the engine of the global economy and has promising capacity for further growth, creating potential opportunities for discerning investors.
China’s economy is diversifying: and continues to transition from a manufacturing-heavy economic model to one that is services and consumption-led.
Is now as a tech-driven giant and has the second highest rate of investment in research and development, worldwide.