In 2018 we saw 462 distributors, up 1.3% from 456 distributors recorded in 2017; with an average sales volume of US$3.46m. Product issuance (99,279) was up 2.5% and sales volumes (US$343.7bn) saw a rise of 3.4% year on year (as of 12/12/2018).

Globally the best-selling products of the year was offered by South Korean Mirae Asset Daewoo Securities’ Mirae Asset Daewoo ELB 2227, raising US$2,260.22m (2,542.43 KRWbn), followed by French LCL’s LCL Triple Etape AV (Mai 2018) selling US$457.8m and Caisse D'Epargne’s Helios Avril 2028 (no public sales volume), LCL Triple Cap (Mars 2018) (US$429.75m) and Banque Populaire’s Helios Septembre 2028 (not public).

The retirement pension product, Mirae Asset Daewoo ELB 2227 (US$2,260.22m) is also the best ever selling South Korean product and the highest sales seen globally since the 2008 crisis . The one-year capital protected growth product features a digital structure linked to the domestic Kospi 200 offering a 2.155% pa if the final level is above 200% of its initial level. Otherwise the product pays 2.154% pa.

Europe

In 2018, SRP registered 267 distributors active in the European region, up 6.4% from 251 distributors in 2017; with an average sales volume of US$2.8m in 2018, down from US$3.5m in 2017. Product issuance (29,495) was up 10% although sales volumes (US$82,674.9m) dropped 12% compared to last year (as of 12/12/2018).

In Europe the top five best-selling products was dominated by French financial services company owned by Credit Agricole, LCL, with three products in the list. LCL Triple Etape AV (Mai 2018) (US$457.8m), Caisse D'Epargne’s Helios Avril 2028 (no public sales volume), LCL Triple Cap (Mars 2018) (US$429.75m), Banque Populaire’s Helios Septembre 2028 (not public) and LCL Triple Tempo AV (Oct 2017) (US$317.42m).

The French winner, LCL Triple Etape AV (Mai 2018) (US$457.8m), is a knock out and protected tracker structure linked to the Eurostoxx 50. After two and four years of investment, if the level of the index on the observation date is at or above its initial level, then the product terminates on that date, offering a capital return of 100%, plus 5.25% per year elapsed since the launch of the product. Otherwise at maturity after six years, the product offers a capital return of 131.5%, as long as the final index level is at or above its initial level. If the final index level did fall, but not below 80% of its initial level, then the product offers a capital return of 115.75%. The product offers a capital return of 100%, as long as the final index level is at or above 60% of its initial level. Otherwise, the product offers a capital return of 100%, decreased by the fall in the index over the investment period. The levels are calculated as the average of three daily readings at the beginning and end of term.

Middle East & Africa

In 2018, SRP recorded 10 distributors active in the Middle East & Africa region, down -33% from 15 distributors in 2017; with an average sales volume of US$1.41m in 2018 down from US$2.39m in 2017. Product issuance has also fallen 17% in 2018 while sales volumes has plummeted 51% compared to previous year (as of 12/12/2018).

Investec is dominating the Middle East and Africa region with four of the Top 5 best-selling products being offered by the South African bank: Investec USD S&P500 Digital Plus (US$25.02m), Investec Rand Eurostoxx 50 Autocall (US$24.39m), Investec Eurostoxx 50 Digital ESP SPIB27 (US$21.54m), Discovery 5 Year FTSE100 Autocall (US$18.11m) and Glacier Capital Enhancer V (US$17.95m).

Best-seller, Investec USD S&P500 Digital Plus (US$25.02m) is a five-year growth product linked to the S&P 500 index. At maturity, if the final level of the index is at or above its initial level, the product offers 130% capital return plus 100% participation in the rise of the index above 130% over the investment period. Otherwise, the product offers 100%.

North America

In 2018, we saw 49 distributors active in North America, missing just one from 2017; with an average sales volume of US$3.21m in 2018. Product issuance (22,564) was up 7.9% while sales volumes (US$72.4bn) rose 3.9% compared to previous year (as of 12/12/2018).

Desjardins Group, Customized Globally Diversified Guaranteed Investment (US$267.30m), Deutsche Bank's Cash-Settled Equity-Linked Notes - JPMorgan Chase (25155MKU4) (US$225m), Merrill Lynch's Accelerated Return Notes - S&P 500 (097097661) US$187.92m, Desjardins Group's Globally Diversified Guaranteed Investment 5 Year Term (US$166.39m), Merrill Lynch's Capped Leveraged Index Return Notes - S&P 500 (13606M292) (US$157.71m).

Most lucrative in the region was Canada’s Customized Globally Diversified Guaranteed Investment (US$267.30m), is a five-year capital protected deposit with a capped call structure linked to a share basket consisting of Air Products & Chemicals, Bank of Montreal, Canadian Imperial Bank of Commerce, Eli Lilly, Engie, Hennes & Mauritz, Hershey, KONE, Power Corporation of Canada, Reckitt Benckiser, Rogers Communications, Royal Dutch Shell, Suncor Energy, T.Rowe Price, Takeda, Telstra, Texas Instruments, Thomson Reuters, TJX Companies, Waste Management.

Latin America

In 2018 we saw 17 distributors active in Latin America; down -15% from 20 distributors in 2017; with an average sales volume of US$1.87m in 2018. Product issuance (4,424) was down -37% although sales volumes is down just -3% compared to previous year (as of 12/12/2018).

BBVA Bancomer’s Accrual Range Note - TIIE 91 - 0.4% pa (US$166.8m), Accrual Range Note (US$122.05m), Banamex's Dual Currency Note - USD/MXN - 38.75% pa (US$109.96m), BBVA Continental's BBVA Oportunidad Especial Soles II (US$100.09m) (Estimate), BBVA Bancomer Accrual Range Note - TIIE 28 - 9.15% pa (US$88.68m).

Mexican BBVA Bancomer’s Accrual Range Note - TIIE 91 - 0.4% pa (US$166.8m), is a 1.5 year growth product linked to the TIIE 91. The product offers at maturity a capital return of 100%, plus 0.4% pa prorated for the number of business days in the investment period when the underlying is equal to or greater than NA, and equal to or lower than 0. Otherwise, the product offers a capital return of 100%.

Asia Pacific

In 2018 we saw 126 distributors active in the Asia Pacific region, down -10% from 141 distributors in 2017; with an average sales volume of US$4.08m in 2018 compared to US$3.6m in 2017. Product issuance (38,818) was down -1.12% while sales volumes (158,506) saw a rise of 12% compared to previous year (as of 12/12/2018).

Mirae Asset Daewoo Securities's Mirae Asset Daewoo ELB 2227 (US$2,260.22m), Mitsubishi UFJ Morgan Stanley Securities's 日経転換債/Nikkei M20211015 (US$317.08m), Mitsubishi UFJ Morgan Stanley Securities' 日経転換債/Nikkei M20210113 (US$310.34m) EXPIRED, Mirae Asset Daewoo Securities' Mirae Asset Daewoo ELB 2228 (US$271.11m), Mitsubishi UFJ Morgan Stanley Securities' デジタル債/Digital Nikkei M20230110 (US$259.69).

The best-selling Asian Pacific product is also this year’s global top-seller. South Korean retirement pension product, Mirae Asset Daewoo ELB 2227 (US$2,260.22m) is also the best ever selling South Korean product and the highest sales seen globally since the crisis in 2008. The one-year capital protected growth product features a digital structure linked to the domestic Kospi 200 offering a 2.155% pa if the final level is above 200% of its initial level. Otherwise the product pays 2.154% pa.