Bank Hapoalim is marketing a new structured product among Israeli retail investors that offers returns linked to the performance of seven large-cap Warren Buffet investments.
Capital Guaranteed Warren Buffet's Chosen Shares is a three-year US dollar-denominated growth deposit linked to the performance of seven large cap companies in which Warren Buffet has invested, including Johnson & Johnson, Wells Fargo & Co, Kraft Foods Inc, oil company Conocophillips, Proctor & Gamble Co, transportation company Burlington Northern Sante Fe Corporation and Coca-Cola.
The capital-guaranteed product is based on a straight uncapped call payoff, offering a return equal to 95% of the three-month averaged performance of the underlying basket. Hapoalim bank, which has labelled this deposit as, “...a transaction involving special risk,” also warns investors about the deposit’s lack of exit/breakage points and the fact that there is no liquidity for the duration of the deposit.
Minimum investment is $5,000, and investors can enrol until 17 July.
Click here to access the final terms for Capital Guaranteed Warren Buffet's Chosen Shares.