A 5 year investment linked to the performance of Switzerland, Europe, Japan and US indices.
AT A GLANCE
If on any semi-annual observation date, including the Final Observation date, starting at 12 months, all of the Underlyings are at or above 100% of their initial levels, the investment will autocall. Initial capital plus the Coupon Rate for each semi-annual period which has elapsed is paid and the investment will end.
If the investment does not autocall, then at the Final Observation date, if all Underlyings are at or above the 60% Capital Protection Barrier, full capital is returned.
If any Underlying is below the Capital Protection Barrier on the Final Observation date, capital return will be reduced on a 1-for-1 basis. For example, if the worst performing Underlying has fallen to 40% of its original level, 40% of the capital will be returned.
DISTRIBUTOR
IDAD was established in 2002 and our approach from the outset, is what we call the “IDAD Difference”. The selection of the investments we offer is not decided in terms of profitability alone and when developing investment products, we favour evidence over dogma. We are happy to work with advisers and product providers alike to deliver a range of investment options to suit differing client wealth strategies. We’re proud of our approach to business as well as the investments delivered as a result of the “IDAD Difference”. We are committed to building upon our reputation for bringing benefits to all involved in the investment process, but most importantly to the clients.
ISSUING BANK
BBVA Global Markets BV was founded in 2009. The Company's line of business includes the management of funds, trusts, and foundations organized for purposes other than religious, educational, charitable, and nonprofit research.
CONTEXT
Structured products are becoming increasingly popular for investors due to the wide variety of payoffs and levels of protection that can be achieved by the different types of structures that are available. Autocalls have been one of the most popular structures over the years. With a classic autocall, returns are paid if all Underlyings are at or above the Autocall Trigger on an observation date. The Underlyings detailed overleaf have been selected in order to support the anticipated delivery of the coupons.
The autocall payoff can bring an early return of capital allowing the opportunity for a re-assessment of investment strategy. The value of this feature cannot be underestimated as it brings with it the opportunity to secure capital value, as well as the chance to take advantage of future market trends.
To manage the capital risk, a final level barrier set at 60% means an Underlying must fall by more than 40% over the full term before capital is at risk. Subject always to Issuer and Guarantor credit risk.
PAYOFF MECHANICS
EXPOSURE
The Swiss Market Index is an index of the largest and most liquid stocks traded on the Geneva, Zurich, and Basel Stock Exchanges. The index has a base level of 1500 as of June 1988.
Bloomberg | SMI IndexThe EURO STOXX 50 Index, Europe's leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region. The index covers 50 stocks from 11 Eurozone countries. The index is licensed to financial institutions to serve as an underlying for a wide range of investment products such as exchange-traded funds (ETFs), futures, options and structured products.
Bloomberg | SX5E IndexThe Nikkei-225 Stock Average is a price-weighted average of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange. The Nikkei Stock Average was first published on May 16, 1949, where the average price was ¥176.21 with a divisor of 225. *We are using official divisor for this index
Bloomberg | NKY IndexThe S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
Bloomberg | SPX IndexThe structure is assessed on the worst performing Underlying in the basket.
HISTORICAL CONTEXT
KEY DATES
| Observation | Observation point | Observation date | Payment date | Autocall trigger |
|---|---|---|---|---|
| 01 | Month 12 | 18 October 2027 | 25 October 2027 | 100% |
| 02 | Month 18 | 18 April 2028 | 25 April 2028 | 100% |
| 03 | Month 24 | 16 October 2028 | 23 October 2028 | 100% |
| 04 | Month 30 | 16 April 2029 | 23 April 2029 | 100% |
| 05 | Month 36 | 16 October 2029 | 23 October 2029 | 100% |
| 06 | Month 42 | 16 April 2030 | 25 April 2030 | 100% |
| 07 | Month 48 | 16 October 2030 | 23 October 2030 | 100% |
| 08 | Month 54 | 16 April 2031 | 23 April 2031 | 100% |
| Final | Month 60 | 16 October 2031 | 23 October 2031 | 100% |
| Final | Month 60 | 16 October 2031 | 23 October 2031 | 60% European Barrier |
Some dates may vary if a bank holiday or non-business day occurs, GBP dates are shown above.
HISTORICAL ANALYSIS
Back-testing shows how the investment would have performed historically using data from previous potential strike dates and observations.
Although past performance is not an indication of future performance, it can give a factual insight into how the investment would have performed historically.
Of the 1,828 product scenarios tested, 97.59% would have matured early. 2.41% reached the final observation without autocalling, while 0.00% would have breached the capital protection barrier.
Core back-test results for this product.
Key scenario analysis results.
Average historic return based on back-test results.
BACK-TEST DISTRIBUTION
Percentage of tested scenarios maturing at each observation point.
Past performance is not a reliable indicator of future performance and should not be used to assess future returns or risks.
Back-test period: 1 September 2014 to 1 September 2026. Results reflect the spreadsheet inputs supplied for this product.
The Issuing bank will endeavour to provide quotes under normal market conditions for trading purposes upon request, subject to a Bid-Offer spread of 1%. On the secondary market, traded prices will include any accrued interest, known as dirty prices. Sale trades will settle 2 days after the trade date.
The purchaser of the Securities represents and agrees that the Securities shall not be offered, advertised, sold or otherwise transferred, directly or indirectly, to any person in violation of applicable economic sanctions or wider restrictions. The information contained herein does not constitute an offer or invitation to purchase Securities in any jurisdiction where such an offer or invitation is not authorised or to any person to whom it is unlawful to make such an offer or invitation.
UK Retail Restrictions: None.
EEA: The requirements for a public offer in a member state of the European Economic Area are not fulfilled. The Securities may only be offered in accordance with applicable prospectus exemptions.
United States of America: This document is not for distribution, directly or indirectly, in or into the United States or its possessions. The Securities have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption.
This factsheet constitutes a financial promotion and has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by IDAD Limited, which is Authorised and Regulated by the Financial Conduct Authority FCA FRN 740499. The information does not take into account the specific investment objective or financial situation of any person. Investors should read and understand the material and seek suitable financial advice before investing. Investments may go up or down in value and investors may lose some or all of the amount invested. Past performance is not necessarily a guide to the future. Returns are at risk if an institution providing securities for the product defaults on its financial obligations.
Fees of up to 1.30% p.a. for the maximum term may be paid by the Issuer to cover marketing, distribution and advice costs. These fees have been accounted for in the calculation of the Product’s structure.
Any financial adviser shall disclose to clients the existence, nature and amount of fees and commissions received in respect of sales of the Note and confirm that they comply with all applicable laws and regulations. This sales brochure has not been prepared or reviewed by the Issuing Bank, the Issuer of the underlying securities or any affiliate, and none accepts responsibility or liability for its contents.