This week's wrap looks back on 2017 and highlights some of the best-selling structures across the five regions covered by the SRP database.

EUROPE

A grand total of 22,893 structured products worth a combined €68bn (US$81.7bn) and distributed across 27 different jurisdictions struck in Europe last year.

Unicredit's Cash Collect Capital Protection 100%, which was distributed to investors in Italy in January, was the best-selling European product in 2017. The seven-year certificate, which offers a fixed annual coupon providing the Eurostoxx 50 is at or above 3,230.68 points on the observation date, collected €392m during its subscription period.

In Belgium, Belfius launched the Euro Multicallable 04/2025, an eight year medium-term note linked to the Solactive Digital Economy index that sold €47.6m in March. The index, which was launched by the index provider in collaboration with Belfius, is derived from the Solactive Europe Total Market 675 Index. Belfius, as the issuer, has the option to call the product at the end of every year after the second year of investment: in that case, the product offers 100% capital return plus a coupon of 2.5% per year elapsed.

LCL collected €370m in France with LCL Double Horizon (Sept 2017). The four-year fund is marketed in a double wrapper, notably as a life-insurance (€262m) and a savings plan (PEA) wrapped product (€108m). The fund is managed by Amundi Asset Management while Amundi Finance acts as the guarantor. The product will be redeemed early, on the second anniversary, providing the underlying Eurostoxx 50 index is at or above 100% of its closing level registered on November 11, 2017 (3,655.04 points).

Handelsbanken's Kreditcertifikat Norden SHBC STE11 was the best-selling product in Sweden with sales of SEK237.9m (€24m). The 5.7-year credit-linked certificate returns a quarterly coupon equal to three-month Stibor plus a premium of 6.5% per annum. If, during the investment term, Stena remains solvent, the product returns 100% of the capital invested at maturity.

NORTH AMERICA

In North-America, 19,060 structured products (US$73bn) struck last year. They included 1,682 products for the Canadian market with the remainder aimed at investors in the US.

The best-selling product in the US, by some distance, was the Raymond James Analysts' Best Picks Notes (06367TQJ2) from Bank of Montreal (US$310m). The unlisted registered notes participate 97% (positive or negative) in the performance of a basket composed of 17 securities selected by the equity research department of Raymond James. The estimated initial value of the notes was 96.58% per 100% in principal amount and a commission of 2% applied.

Merrill Lynch issued the Accelerated Return Notes, which sold $174m in May. The product, which has a term of 14 months, participates 300% in the rise of the S&P 500, subject to a maximum overall return of 110%. In addition to the underwriting discount of 2%, the notes include a hedging-related charge of 0.54% per unit. The estimated value of the notes as of the pricing date was set at 97.1%.

In Canada, Desjardins collected C$44m (US$35m) in January for its Zenitude Balanced Guaranteed Portfolio, a five-year market linked guaranteed investment (MLGI). At maturity, the product offers 100% capital return plus 100% of the rise in a portfolio that includes a fixed-yield component in the shape of term savings (weight 20%) and three variable-yield components (globally diversified basket - 60%; Canadian diversified basket - 12%; Emerging markets basket - 8%).

LATIN AMERICA

There were 5,427 structured products ($9.2bn) which struck in the Latam region in 2017, including 3,674 products in Mexico and 390 in Brazil.

BBVA Bancomer provided the best-selling structure in Mexico. CD FX Barrera Europea a Alza is linked to the US dollar/Mexican peso currency pair and sold MXN1,590.9m ($81m) in February. At maturity, the deposit offers a capital return of 100% plus 1.2025% pa. if the final level of the underlying is equal to or higher than 19.70. Otherwise, the product offers a capital return of 101.20%.

In Brazil, Itau collected BRL135.7m ($41m) for COE Turbo Pre, a three-year structured deposit linked to the CDI interest rate which is targeted at private banking investors. If, at maturity, the level of the CDI is less than 9.80% pa., the product returns 100% of the nominal invested plus a fixed rate greater than 9.91% pa.

MIDDLE EAST & AFRICA

In the Mea region a total of 1,673 structured products (US$3.9bn) had strike dates in 2017.

Investec introduced the East Asian Growth Basket Note to investors in South Africa that sold ZAR1,441m ($116m) during its subscription period. The five-year, US dollar-denominated MTN, which offers a minimum capital return of 105%, is linked to a weighted basket comprising Nikkei 225 (20%), S&P 500 (45%), Eurostoxx50 (20%) and iShares MSCI Emerging Markets ETF (15%).

In Mauritius, LS Advisors collaborated with Societe Generale for the launch of the 10-year Tempo SBF Top 80 EW Note, which achieved sales of MUR930m ($27m) in October. The product offers a fixed coupon of 5% pa, providing the underlying SBF Top 80 EW Decrement 50 Points Index closes at or above 80% of its initial level.

Bank of Jerusalem distributed a three-year shekel deposit linked to the Finvex Sustainable Efficient Europe 30 in Israel. The product offers minimum capital return of 100% plus 40% of the rise in the index.

ASIA PACIFIC

More than 35,000 structured products worth a combined $140bn struck in the Apac region during 2017. The products where issued across 10 markets, of which South Korea, with 25,224 products, was the most active, followed by Thailand (4,240), Taiwan (2,775), Japan (1,000), Hong Kong (674) and China (610).

The best-selling structure in South Korea was provided by NH Investment & Securities' ELB 1205, a one-year security linked to the shares of Samsung and SK Telecom. The capital protected equity-linked bond offers a minimum capital return of 102.1% at maturity. The product struck on January 2 and sold KRW567.2bn ($531m).

In Japan, SMBC Nikko Securities, a subsidiary of Sumitomo Mitsui Financial, distributed 複数指数連動 M20220128, which collected a sales volume of JPY30bn ($266m). The product offers a fixed coupon of 4% pa for the first quarter and each quarter thereafter a coupon of the same amount providing the worst performing of the Nikkei 225 and S&P 500 is at or above 80% of its initial level. The securities are issued via Kommunalbanken.