This week's product wrap analysis covers products with strike dates between September 2 and September 8, 2017. The structures reviewed include a new tranche of an old favourite from Kempen, an innovative switch feature in Belgium, an index that offers exposure to five managed funds and a range of products linked to local indices from Standard Bank in South Africa.

EUROPE
Seventy structured products from 26 providers and distributed across 13 jurisdictions struck in Europe this week.

Kempen has launched a second tranche of VL 90% Index Garantie Note AEX 17-23, a six-year growth product offering 100% participation in the performance of the AEX Index, subject to a minimum capital return of 90% and a maximum capital return of 160%. The note was issued by the Dutch bank on September 5, although the strike level remains the same as for the original tranche, which struck on April 24 when the index closed at 523.73 points.

"At the time we issued €10m and those sold out last week," said Laurent Guntenaar, director structured investments, Kempen. "That's why we have issued a new tranche of €10m which over time will become fungible with the original tranche from April." After 40 business days both products will be available under the original Isin (NL0012247746), according to Guntenaar.

Axa is distributing the Optinote ESG Leaders Switchable 2 in Belgium. The 10-year capital protected medium-term note participates 150% in the positive performance of the Stoxx Global ESG Leaders Diversification Select 50, subject to 12-month backend averaging. Every year, the issuer (Axa Belgium Finance) has the option to implement a 'switch' to a fixed rate bond which pays 10 annual coupons of 5%.

In Norway, Garantum Fondkommission introduced Europeiske Selskaper Kvartalsvis Pluss/Minus nr 3152, an autocall with a maximum term of five-years which is linked to the performance of a basket of four European stocks (Lufthansa, Pandora, Renault, Vodafone). The product is issued via Goldman Sachs and knocks out if the level of each share is at or above 90% of its initial level on the quarterly observation date.

KutxaBank launched a six-year structured fund targeted at retail investors in Spain. KutxaBank Euribor 3 registers an annual coupon equal to the performance of the 3-month Euribor, subject to a minimum of 0.1% and a maximum of 1.5%. At maturity the product offers the return of the nominal invested plus the sum of all registered coupons.

Poland's Idea Bank, part of the Getin Holding Group, issued Optimum Funds 140% - VII edycja, a three-year growth product linked to the NXS Momentum Fund Stars ER Index. The index offers exposure to five managed funds (Old Mutual - Equity Absolute Return Fund, JP Morgan Investment Funds - Global Income Fund, M&G Optimal Income Fund, Nordea 1 - European High Yield Bond Fund, Pimco Emerging Markets Bond Fund) and has a target volatility of 3.5%.

NORTH AMERICA

Just three products had strike dates in North America this week, two of which were targeted at the US and one product was aimed at investors in Canada.

Morgan Stanley Smith Barney is distributing the one-year Autocallable Contingent Income Securities (22549D137) in the US. The unlisted registered notes are issued via Credit Suisse and linked to the common stock of United States Steel Corporation. The estimated initial value of the product - which is equal to the sum of the issuer's valuations of the components of the product, the bond and the embedded derivative(s), on the trade date - is 97% and a commission fee of 1.75% applies.

National Bank of Canada (NBC) launched series 44 of its NBC Canadian Banks Deposit Notes, a 6.5-year capital protected growth product which participates 100% in an equally weighted portfolio comprising the shares of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto Dominion Bank. NBC maintains a daily secondary market subject to availability and to early trading charges within the first 360 days of up to C$3.60 per deposit. The product is eligible for, among other, registered retirement savings plans (RRSP), deferred profit sharing plans (DPSP) and tax-free savings accounts (TFSA). A minimum subscription of C$1,000 applies (10 deposits).

ASIA-PACIFIC
Twenty structured products struck in the Apac region this week including 10 products in South Korea, nine in Japan and one in Taiwan.

In South Korea, Meritz Asset Management launched Meritz ELF 62, a three-year equity-linked fund linked to the performance of the Kospi 200. The product, which is distributed, among other, via Daegu Bank, KB Investment & Securities, Mirae Asset Daewoo Securities, NH Investment & Securities, Shinhan Investment and Suhyup Bank, will be redeemed early at the end of each semester if the level of the index is at or above a certain threshold (between 95% and 85%, depending on the semester) of its initial level.

SMBC Nikko Securities introduced Digital M20220907 to retail investors in Japan. The five-year income product, which is issued in collaboration with Societe Generale, pays a fixed coupon of 4.35% p.a. for the first quarter of investment. The following quarters the product offers a 4.35% p.a. coupon providing the levels of both the Nikkei 225 and S&P 500 close at or above 80% of their initial levels. Otherwise the product offers a coupon of 0.1% p.a. for that quarter. The product collected a sales volume of JPY2.58bn (US$237,200) during its subscription period.

MIDDLE EAST & AFRICA
The 50 products that struck in the Mea region were all targeted at investors in South Africa.

Standard Bank issued the Capped Protected Index FINI 15 - 100/36m, a three-year capital protected MTN participating 100% in the rise of the FTSE/JSE Financial 15 Index, capped at an overall maximum return of 180%. The bank also issued similar products linked to the FTSE/JSE Industrial 25 Index, FTSE/JSE Africa Top 40 Index and FTSE/JSE Resources 10 Index.