MG Investment Letter

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MG Investment Letter
MASHREQ GOLD Investment Letter
Ideas and opportunities for 2015
5th January 2015
1
Table of Contents
Pages
I-Cash Management Solutions:
1-Certificate of Deposit
4
2-Dual Currency Deposits (DCD)
5
II-Fixed Income:
1-Single Names
7
2-Makaseb Income Fund
8-9
3-Mashreq Al Islami Income Fund
10-11
4-Schroder ISF Global Bond
12-13
5-Templeton Global Total Return
14-15
III-Equity:
1-Makaseb Arab Tigers Fund
17-18
2-Mashreq Al Islami Arab Tigers
19-20
3-KSA: An Actively Managed ‘Saudi Portfolio’
21-22
4-Schroder ISF US Large Cap
23-24
5-Equity Tracker: US Buyback Thematic Portfolio
25
6-Schroder ISF Euro Equity
26-27
7-Equity Tracker: Global Dividend Yield Blue- Chip Tracker
28
8-Schroder ISF Global Multi Asset Income
29-30
9-Schroder ISF Greater China
31-32
10-Franklin India
33-34
IV-Structured Products:
1- Switched To Fixed Income linked to Eurostoxx 50
36
2- 5 Years Capital Guarantee product on Indices
37
3- Reverse Convertible Notes
38
2
I-Cash Management Solutions
3
1-Certificate of Deposit
Terms & Conditions
Definition: A certificate issued by a bank to a person depositing money for a specified length of time at a
specified rate of interest.
Indicative CD Grid (04/1/2014)
Issuer & Guarantor
Mashreq Bank
Tenor
6M, 9M, 1 Year, 2 Years ….10 Years
Coupon
The Investor will receive a coupon of X%
throughout the tenor of the investment
(frequency of the coupon can be
Monthly, Quarterly, Semi-annually and
yearly)
CD Grid
AED
USD
QAR
EUR
GBP
0.59%
0.59%
0.72%
0.18%
0.83%
0.63%
0.62%
0.75%
0.13%
0.81%
1 year
0.66%
0.65%
0.75%
0.08%
0.79%
2 years
1.58%
1.62%
1.58%
0.51%
1.44%
6 months
9 months
Currency
AED, USD, QAR, EUR, GDP
3 years
2.14%
2.18%
2.14%
0.54%
1.70%
Capital Guarantee
100% only at maturity
4 years
2.54%
2.60%
2.54%
0.87%
2.07%
Liquidity
The investor should be prepared to hold
until maturity.
Early redemption will be subject to a
0.25% charge and the principal is not
guaranteed in case the investor chooses
to liquidate prior to maturity.
5 years
2.93%
2.96%
2.93%
1.12%
2.35%
6 years
3.06%
3.01%
3.06%
1.08%
2.36%
7 years
3.25%
3.07%
3.25%
1.12%
2.40%
8 years
3.27%
3.01%
3.27%
1.06%
2.32%
9 years
3.33%
2.99%
3.33%
1.05%
2.29%
10 years
3.45%
3.00%
3.45%
1.08%
2.30%
4
2-Dual Currency Deposits (DCD) - Description
Product Characteristics:
•Initial investment
•Guaranteed Coupon
•Capital is not guaranteed 
Scenario 1: if the closing level at maturity is above the strike level, the investor receives 100% of his capital back
Scenario 2: If the closing level at maturity is below the strike level, the investor will be converted into the other currency @
strike level
Levels 05/1/2015
Base ccy
Alternate ccy
50 pips away from spot
75 pips away from spot
100 pips away from spot
Coupon
Strikes
Coupon
Strikes
Coupon
Strikes
USD
EUR
8.80%
1.1910
7.87%
1.1885
7.02%
1.1860
USD
GBP
6.84%
1.5250
6.12%
1.5225
5.46%
1.5200
USD
AUD
11.22%
0.8000
9.83%
0.7975
8.52%
0.7950
AUD
USD
10.22%
0.8100
9.03%
0.8125
7.95%
0.8150
EUR
USD
8.40%
1.2010
7.47%
1.2035
6.60%
1.2060
GBP
USD
6.65%
1.5350
5.93%
1.5375
5.29%
1.5400
USD
XAU
7.74%
1,147.00
3.48%
1,122.00
1.01%
1,097.00
Numerical Example:
Initial investment: USD 1 Million
Underlying EURUSD
Tenor: 1 Month
Coupon Guaranteed is 8.40%
Strike: 50 pips away from spot level
At maturity 2 scenarios:
If closing level of the EURUSD is above the strike level, the investor
receives his capital initially invested plus 8.40% coupon
If the closing level of the EURUSD is below the strike level, the
investor receives his capital initially invested converted into EUR at the
strike level plus the 8.40% coupon
5
II-Fixed Income
6
1-Single Names
ISIN
NAME
XS0847495248 INVESTCORP SA
CRNCY PRICE YIELD
MATURITY
RESIDUAL
S&P/MOODS
COUPON DURATION
MATURITY
/FITCH
INDUSTRY
COUNTRY
Diversified
Financial
Services
BAH
BBB-/Baa3/NA Real Estate
UAE
USD
108.60 4.94%
11/1/2017
2.82
8.250%
2.48
USD
105.10 2.96%
12/3/2018
3.91
4.348%
3.57
XS1137967409 AL SHINDAGHA SUKUK (FLY Dubai)
USD
100.01 3.77%
11/26/2019
4.89
3.776%
4.40
XS0927183441
BATELCO INT FIN NO 1
USD
99.68 4.32%
5/1/2020
5.32
4.250%
4.67
XS1069869839
ICD SUKUK CO LTD
USD
99.16 3.68%
5/21/2020
5.37
3.508%
4.83
NA/NA/NA
XS0897453493 ADCB FINANCE
USD
102.12 4.19%
3/6/2023
8.16
4.500%
6.69
A-/NR/A
XS1064799841 MAF GLOBAL SECURITIES
USD
103.35 4.31%
5/7/2024
9.34
4.750%
7.45
Diversified
BBB/NA/BBB Financial
Services
UAE
XS1120403313 DIFC SUKUK
USD
100.25 4.29%
11/12/2024
9.85
4.325%
7.90
Diversified
BBB-/NA/NA Financial
Services
UAE
101.47 4.32%
2/6/2025
SINKABLE
(Avg. Life
4.89)
10.09
4.500%
7.90
XS0993959583
XS0885065887
SUKUK FUNDING NO3 (Aldar)
EMIRATES AIRLINES
USD
NA/Ba2/BB
NA/NA/NA
Airlines
UAE
BB+/NA/BBB- Telecommunica BAHR
tions
NA/NA/NA
Investment
Companies
UAE
Banks
UAE
Airlines
UAE
7
2-Makaseb Income Fund
Fund Objective:
Top Holdings
Makaseb Income Fund (MIF) primarily seeks to provide current
income along with the stability of capital. Fund’s secondary
objective is to seek income growth over the long term. The Fund
aims to achieve its investment objective by investing in a
diversified portfolio of fixed and floating rate investments
originating from countries in the GCC, MENA, South Asia and
other emerging economies.
ICD FUNDING LTD
7.54%
INVESTCORP SA
5.44%
OFFICE CHERIFIEN DES PHO
5.24%
DIP SUKUK LTD
5.06%
SRILANKAN AIRLINES LTD
5.04%
Only regional Fixed Income Fund that carries a track record of 5+ years
Regional Allocation
Europe 0.25%
Industry Allocation
Cash 3.10%
Energy 4.02%
Logistics 4.12%
South Asia
12.85%
Airlines 5.04%
Cash 3.10%
Financial 19.49%
Conglomerate
14.38%
Telecom 5.12%
Materials 5.24%
Utilities 6.59%
Real Estate
9.81%
Industrial 7.45%
MENA 83.80%
Note: Performance calculated as of Oct 30, 2014
Sovereign 7.59%
Diversified Finan
Serv 8.06%
8
2-Makaseb Income Fund
Track record
100.0%
30.0%
75.33%
75.0%
44.83%
21.40%
50.0%
3.91%
7.45%
1.04%
25.0%
0.0%
-25.0%
15.0%
43.86%
5.62%
33.62%
7.08%
12.15%
5.50%
0.39%
0.92%
7.53%
-15.0%
-10.61%
-21.60%
-30.0%
YTD
19.93%
12.30%
12.08%
0.0%
-0.87%
MTD
10.40%
2.10%
28.37%
4.56%
23.54%
1 Year
Makaseb Income Fund
3 Years
5 Years
SI
2007
Benchmark
2008
2009
Makaseb Income Fund
2010
2011
2012
2013
Benchmark
Fund Statistics
Average Coupon
5.73
Fund Rating
BB+
Average Maturity
9.29
Average Yield
4.91
Modified Duration
4.74
Note: Performance calculated as of Oct 30, 2014
*Fund’s benchmark until Dec 31, 2013 was HSBC Nasdaq Dubai ME index. Since the
index was discounted, Jan 1, 2014, the benchmark of the fund changed to JP Morgan
MECI Index
BB Ticker (JCADMETR) 14.
Fund Highlights
● Min Investment USD 10,000
● Only Regional Fixed Income Fund with a track record 5 years+
● Each business day
● Recipient of MENA Fund Manager Award in 2011
● Regulated by the CBB
● Recipient of MENA Fund Manager Award in 2013
● Recipient of MENA Fund Manager Award in 2014
9
3-Mashreq Al Islami Income Fund
Fund Objective:
Top Holdings
The Fund seeks to achieve average annual returns of 5-7% per
annum over the life of the Fund. The Fund invests primarily in
Sukuk and other fixed income Shariah compliant assets.
DAR AL ARKAN REAL ESTATE DEVEL
11.88%
NAKHEEL PJSC
11.00%
EMIRATES AIRLINE
7.57%
SAUDI ELECTRICITY CO
6.69%
EMAAR MALLS GROUP PJSC
5.82%
Launched in June 2009, MAIIF has the strongest track record amongst its Global Peers
Regional Allocation
South Africa
2.85%
USA 3.79%
China 1.89%
Industry Allocation
Conglomerate
5.58%
Cash 3.34%
Cash 3.34%
Utilities 6.69%
Indonesia
4.20%
Real Estate
36.92%
Airlines 7.57%
Turkey 5.79%
UAE 59.58%
Saudi Arabia
18.57%
Note: Performance calculated as of Oct 30, 2014
Industrial
8.99%
Financial
12.37%
Sovereign
18.54%
10
3-Mashreq Al Islami Income Fund
Track record: B Shares
52.49%
50.0%
50.0%
41.98%
25.0%
22.54%
25.0%
5.68%
5.77%
5.94%
9.17%
13.35%
8.01%
2.07%
0.0%
0.0%
-0.10%
-25.0%
-25.0%
MTD
YTD
1 Year
3 Years
5 Years
SI
2009
2010
2011
2012
2013
Mashreq Al Islami Income Fund
Mashreq Al Islami Income Fund
Fund Statistics
Average Coupon
4.94
BLP Rating
BBB
Average Maturity
8.24
Average Yield
4.32
Modified Duration
3.50
Note: Performance calculated as of Oct 30, 2014
Fund Highlights
● Global Islamic Fund
● Track record 3+years
● Each business day
● Min Investment USD 10,000 for B shares
● Recipient of MENA Fund Manager Award in 2011, 2012
● Recipient of Best Islamic Fund Award 2012 from Bankers
Middle East & Islamic Banking and Finance
● Regulated by the DFSA
11
4-
4-
5-
5-
IV-Equity
16
1-Makaseb Arab Tigers Fund
Fund Objective:
Top Holdings
Makaseb Arab Tigers Fund (MATF) aims to achieve long
term capital appreciation through investing mainly in
shares of companies listed on the Stock Exchanges of the
Middle East and North Africa region.
FAWAZ ABDULAZIZ ALHOKAIR & CO
6.44%
AL TAYYAR TRAVEL GROUP
4.81%
SAVOLA
4.31%
SAMBA FINANCIAL GROUP
4.16%
EMAAR PROPERTIES
4.11%
A well diversified portfolio giving better exposure with minimum risk
Industry Allocation
Regional Allocation
Cash -1.56%
Cash -1.56%
Utilities 3.05%
Oman 8.85%
Energy 6.29%
Telecom 6.42%
Financials
39.34%
UAE 13.84%
Saudi Arabia
43.56%
Consumer
Staples 12.05%
Qatar 14.49%
Consumer
Discretionary
15.72%
Note: Performance calculated as of Oct 30, 2014
Materials
18.69%
Egypt 20.82%
17
1-Makaseb Arab Tigers Fund
Track record
170.0%
106.10%
120.0%
25.36%
70.0%
14.29%
20.0%
34.67%
60.0%
114.38%
41.60%
61.01%
32.47%
48.20%
39.00%
17.30%
30.0%
20.30%
34.95%
12.90%
8.30%
0.0%
20.96%
-30.0%
-5.62%
-34.16%
-80.0%
MTD
YTD
1 Year
3 Years
5 Years
-60.0%
-55.00%
2007
Makaseb Arab Tigers Fund
0.65%
-51.20%
-90.0%
SI
21.90%
3.11%
-13.60%
-6.16%
-30.0%
21.07%
Benchmark
2008
2009
2010
Makaseb Arab Tigers Fund
2011
2012
2013
Benchmark
Risk/Return Profile Since Inception
Excess Return
94.83%
R Squared
48.03%
Beta
0.58
Information Ratio
8.29
Sharpe Ratio
4.34
Treynor Ratio
0.05
Skewness
(1.17)
Tracking Error
Kurtosis
19.37
Correlation
SD
11.44%
0.69
13.52%
Note: Performance calculated as of Oct 30, 2014
Fund Highlights
● Track record 8 years+
● Daily Dealing
● Recipient of MENA Fund Manager Award in 2013
● Min Investment USD 1,000
● Recipient of MENA Fund Manager Award in 2014
● Regulated by the CBB
18
2-Mashreq Al Islami Arab Tigers
Fund Objective:
Top Holdings
The objective of the fund is to seek long term capital
appreciation
through Shariah compliant investments made
primarily in equities of companies that are contained in the S&P
Pan Arab Composite Shariah Index (the “Index”). The index
includes equities from issuers located in countries of Bahrain,
Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi
Arabia, Tunisia, and the United Arab Emirates (“MENA”).
T M G HOLDING
4.97%
DUBAI ISLAMIC BANK
4.92%
INDUSTRIES QATAR
4.60%
ALDAR PROPERTIES PJSC
4.44%
EMAAR PROPERTIES
4.43%
First Offshore UCITS III fund by an onshore Investment Manager
Industry Allocation
Utilities 2.43%
Regional Allocation
Cash 4.85%
Cash, 4.85%
Energy 3.69%
Consumer
Discretionary
6.86%
Oman, 3.20%
Financials
35.57%
Saudi Arabia,
38.76%
Qatar, 16.55%
Telecom 8.11%
Egypt, 17.33%
Consumer
Staples 8.75%
Industrials
8.99%
Note: Performance calculated as of Oct 30, 2014
Materials
20.75%
UAE, 19.31%
19
2-Mashreq Al Islami Arab Tigers
Track record
120.0%
103.99%
90.0%
76.44%
70.45%
25.83%
60.0%
19.49%
30.0%
13.85%
-7.00%
-5.51%
MTD
YTD
23.84%
17.28%
30.0%
0.98%
43.91%
29.56%
22.88%
8.78%
12.89%
6.87%
Mashreq Arab Tigers Fund
3 Years
5 Years
3.10%
2.08%
-13.61%
-30.0%
1 Year
21.90%
15.04%
0.0%
0.0%
-30.0%
60.0%
-14.34%
SI
-60.0%
-47.66%
2008
Benchmark
2009
2010
2011
Mashreq Arab Tigers Fund
2012
2013
Benchmark
Risk/Return Profile Since Inception
Excess Return
Beta
Sharpe Ratio
118.3%
0.22
12.77
R Squared
Information Ratio
10.54
Treynor Ratio
Skewness
0.45
Tracking Error
Kurtosis
9.83
Correlation
SD
17.24%
0.46
11.23%
0.42
7.96%
Note: Performance calculated as of Oct 30, 2014
*Fund’s benchmark: S&P Pan Arab Shariah Index
Fund Highlights
● The fund targets long term gains across most market
environment
● Min Investment USD 1,000
● The fund has a Track record of 5+ years operating as a
conventional MENA Equity Fund. The fund was converted to
an Islamic fund dated March 18, 2014
● UCITS III compliant Dublin domiciled
● Daily Dealing
● Regulated by the Irish Financial services
20
3-KSA: An Actively Managed ‘Saudi Portfolio’
Investment Objective:
•
To achieve long term capital appreciation primarily through investment in listed equities in KSA and to increase exposure to
Saudi market to benefit from the positive momentum before the opening to foreigners and a potential inclusion in MSCI
emerging market index
Investment Guidelines:
•
The investment universe is limited to securities listed in the stock exchanges in Saudi Arabia
•
The portfolio will have a maximum exposure of 15% in a single security
•
The basket of stocks will be actively managed by Mashreq’s Asset Management team
•
•
Mashreq Asset Management has been the best performing fixed income and equity funds as independently verified by
Zawya
•
The only asset management firm in the GCC to have a track record of 9 years in equities and 7 years in Fixed Income
Exclusively for Mashreq Private Banking Clients
21
3-KSA: An Actively Managed ‘Saudi Portfolio’- contd.
Parameters
Specifications
Fund Type
Open Ended
Close Date (For initial Subscription)
Up to September 18, 2014
Portfolio Benchmark
Tadawul All Share Index
Geographic Allocation
Saudi Arabia
Valuation Day
Each Monday, if Monday is a business day
Dealing Day
Each Monday, if Monday is a business day
Minimum Subscription Amount
In SAR equivalent to USD 150,000
Subscription Fee
2%
Management Fee
1% p.a. accrued weekly and charged quarterly
Performance Fee
15% of performance above the Portfolio Benchmark
Exit Fee
1% during the first year and 0% thereafter
22
4-
4-
5- Equity Tracker: US BUYBACK THEMATIC PORTFOLIO
The Buyback Thematic Portfolio - Equity Tracker is a 1 Year, USD denominated, linked to listed US Stocks . The Investment
is designed to enable the Client to invest in a note that tracks the performance of US stocks which reward their share
holders with consistent buybacks of their shares. The redemption value of the Underlying will be paid on the Redemption
Date.
US Buyback Thematic
Portfolio*
Product details
Issuer
Minimum Notional
Tenor
Initial Level
Final Level
Load Fee
Leverage details
Mashreq Bank
USD 200,000
1 Year
Execution price of the underlying on the trade date
Execution price of the underlying at Maturity
2.00% of the Notional on entry and redemption
Maximum Leverage
Leverage Cost
Margin Call
Liquidation
1:1
3.5% p.a.
65% LTV
80% LTV
Redemption details
Redemption at Maturity
Back-Testing Results
Indicative Basket
SECURITIES
Notional x[(final level + Dividends
received)/ Notional] - Net Leverage(If any)
WEIGHTS
SECTOR
TTM BUYBACKS
(USD BILLIONS)
250
US BUYBACK THEMATIC PORTFOLIO
S&P 500 BUYBACK INDEX (NORMALISED)
230
APPLE INC
10 %
TECHNOLOGY
33
210
PFIZER INC
10%
HEALTHCARE
11
190
ORACLE CORPORATION
10 %
TECHNOLOGY
9.8
150
HOME DEPOT
10%
CONSUMER
7.5
130
WELLS FARGO
10 %
FINANCIALS
6.9
MICROSOFT CORP
10%
TECHNOLOGY
6.4
AT&T INC
10 %
TELECOM
5.0
TIME WARNER
10%
MEDIA
6.5
MERCK & CO. INC
10 %
HEALTHCARE
6.0
GENERAL MOTORS
10%
AUTOMOTIVE
5.0
170
110
*Product Risk Rating : Aggressive (R5) - Based on Internal Risk Rating : Conservative (R1), Conservative
90
70
PERFORMANCE
TABLE
1 WEEK
1 MONTH
3 MONTHS
6 MONTHS
TRACKER
-1.79%
-0.78%
6.04%
8.73%
BENCHMARK
-1.31%
-0.10%
6.71%
7.25%
to Moderate (R2), Moderate (R3), Moderate to Aggressive (R4) , Aggressive R(5).
25
6-
6-
7- Equity Tracker: Global Dividend Yield Blue Chip Tracker
The Global Dividend Yield Blue-chip Equity Tracker is a 1 Year, USD denominated, linked to dividend yielding stocks listed
worldwide. The Investment is designed to enable the Client to invest in a note that tracks the performance of blue chips
stocks which reward their share holders with consistent dividend payments, including any dividends paid during the Tenor
of the Investment. The redemption value of the Underlying will be paid on Redemption Date
Global Dividend Yield
Blue Chip Tracker*
Product details
Issuer
Minimum Notional
Tenor
Initial Level
Final Level
Load Fee
Leverage details
Mashreq Bank
USD 250,000
1 Year
Execution price of the underlying on the trade date
Execution price of the underlying at Maturity
2.00% of the Notional on entry and redemption
Maximum Leverage
Leverage Cost
Margin Call
Liquidation
Redemption details
Redemption at Maturity
Indicative Basket
SECURITIES
1:1
3.5% p.a.
65% LTV
80% LTV
WEIGHTS
SECTOR
COUNTRY
AT&T INC
5.3%
TELECOM
UNITED STATES
VERIZON COMMUNICATIONS INC
5.3%
TELECOM
UNITED STATES
UNILEVER PLC-SPONSORED ADR
5.3%
CONSUMER, NON-CYCLICAL
BRITAIN
COCA-COLA CO/THE
5.3%
CONSUMER, NON-CYCLICAL
UNITED STATES
MICROSOFT CORP
5.3%
TECHNOLOGY
UNITED STATES
JOHNSON & JOHNSON
5.3%
HEALTHCARE
UNITED STATES
MCDONALD'S CORP
5.3%
CONSUMER, CYCLICAL
UNITED STATES
UNITED PARCEL SERVICE-CL B
5.3%
TRANSPORTATION
UNITED STATES
ROCHE HOLDINGS LTD-SPONS ADR
5.3%
HEALTHCARE
SWITZERLAND
INTEL CORP
5.3%
TECHNOLOGY
UNITED STATES
NESTLE SA-SPONS ADR
5.3%
CONSUMER, NON-CYCLICAL
SWITZERLAND
MERCK & CO. INC.
5.3%
HEALTHCARE
UNITED STATES
SIEMENS AG-SPONS ADR
5.3%
ENGINEERING
GERMANY
FIRST GULF BANK
5.3%
FINANCIAL
UAE
SAUDI BASIC INDUSTRIES CORP
5.3%
ENERGY
SAUDI ARABIA
SAUDI TELECOM CO
5.3%
TELECOM
SAUDI ARABIA
NATIONAL GRID PLC-SP ADR
5.3%
UTILITIES
BRITAIN
GENERAL ELECTRIC CO
5.3%
INDUSTRIAL
UNITED STATES
ELI LILLY & CO
5.3%
HEALTHCARE
UNITED STATES
*Product Risk Rating : Aggressive (R5) - Based on Internal Risk Rating : Conservative (R1), Conservative
Notional x[(final level + Dividends
received)/ Notional] - Net Leverage(If any)
Back-Testing Results
190
GLOBAL DIVIDEND YIELD BLUE CHIP TRACKER
S&P GLOBAL DIVIDEND OPPORTUNITIES INDEX (NORMALISED)
170
150
130
110
90
70
PERFORMANCE
TABLE
1 WEEK
1 MONTH
3 MONTHS
6 MONTHS
TRACKER
-2.23%
-3.85%
-3.18%
-3.24%
BENCHMARK
-0.57%
-3.14%
-6.31%
-15.93%
to Moderate (R2), Moderate (R3), Moderate to Aggressive (R4) , Aggressive R(5).
28
8-
8-
9-
9-
10-
10-
IV-Structured Products
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1-Switched To Fixed Income linked to Eurostoxx 50
Description
Product Characteristics:
•100% Capital guarantee at maturity by Mashreq Bank
•Maturity: 4 Years
•Currency: USD (available in EUR)
•Underlying: EUROSTOXX 50
•Switch Coupon: 6.5% p.a.
Switch to bond payoff (Year1-3)
Each year (Year 1 – 3), the issuer has the right to switch the product to a structure that is not exposed to the
underlying performance anymore, the investor will recover all previous coupon and the product will turn into a
straight bond delivering 6.5% coupon until maturity.
Payoff at maturity:
On maturity date, if switch to bond option has not occurred prior to maturity, the investor will receive in addition
to his capital initially invested 100% of the eurostoxx performance i.e.:
Capital initially invested * 100% of the Eurostoxx positive performance.
Available for individual & corporate clients
Please note that prices are subject to market conditions
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2- 5 Years Capital Guarantee product on Indices
Description
Product Characteristics:
•Tenor: 5 Years
•100% Capital guarantee at maturity
•Currency: USD
•Underlying basket: S&P, Eurostoxx 50 & Nikkei 225
•Observations: Annual
•Annual Coupon: Guaranteed Coupon + Conditional Coupon
•Guaranteed coupon: 2% p.a.
•Conditional Coupon: 2.75% p.a.
Yearly coupon:
At the end of each year, the investor receives a guaranteed coupon of 2% independently of the performance of the
basket + a conditional coupon of 2.75% if all 3 underlyings are above their initial levels.
At maturity,
The investor receives 100% of his capital initially invested + the guaranteed coupon + the conditional coupon
Available for corporate clients
Please note that prices are subject to market conditions
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3- Reverse Convertible Notes
UAE
ATM - 100% STRIKE
1 MONTH
3 MONTHS
6 MONTHS
1 YEAR
EMAAR PROPERTIES
1.84%
2.99%
4.85%
5.15%
ALDAR PROPERTIES
2.18%
3.60%
4.95%
6.67%
DUBAI FINANCIAL MARKET
2.25%
3.80%
5.23%
7.00%
ARABTEC HOLDING
2.40%
4.05%
5.51%
7.70%
UNION PROPERTIES
2.30%
4.18%
5.20%
7.10%
DUBAI ISLAMIC BANK
1.61%
2.70%
3.60%
4.71%
FIRST GULF BANK
1.35%
2.30%
2.70%
3.53%
QATAR
ATM - 100% STRIKE
1 MONTH
3 MONTHS
6 MONTHS
1 YEAR
COMMERCIAL BANK OF QATAR
1.05%
2.20%
2.40%
3.04%
QATAR NATIONAL BANK
1.10%
2.10%
2.67%
3.40%
INDUSTRIES QATAR
1.30%
2.35%
2.90%
3.85%
KSA
ATM - 100% STRIKE
1 MONTH
3 MONTHS
6 MONTHS
1 YEAR
ETIHAD ETISALAT
1.35%
2.35%
2.90%
3.85%
SAUDI BASIC INDUSTRIES
1.57%
2.65%
3.50%
4.60%
AL RAJHI BANK
1.35%
2.30%
2.70%
3.53%
PLEASE NOTE THAT PRICES ARE INDICATIVE & SUBJECT TO MARKET CONDITIONS
38
DISCLAIMER
This report was prepared by the Mashreq Gold Unit of Mashreqbank psc (“Mashreq”) in the United Arab Emirates (“U.A.E.”). Mashreq is regulated by the Central
Bank of the U.A.E. This report is provided for informational purposes and private circulation only and should not be construed as an offer to sell or a solicitation to
buy any security or any other financial instrument or adopt any hedging, trading or investment strategy. Prior to investing in any product, we recommend that you
consult with a professional financial advisor, taking into consideration investment objectives, financial circumstances and tax implication. While based on information
believed to be reliable, we do not guarantee and make no express or implied representation as to the accuracy of this report or complete description of the securities
markets or developments referred to in this report. The information, opinions, forecasts (if any), assumptions or estimates contained in this report are as of the date
indicated and are subject to change at any time without prior notice. The stated price of any securities mentioned in this report is as of the date indicated and is not a
representation that any transaction can be effected at this price. The risks related to investment products described in this report are not all encompassing and
investors should refer to the relevant investment offer document for detailed information and applicable terms and conditions. Investment products, including treasury
products, are not guaranteed by Mashreq or any of its affiliates or subsidiaries unless stated otherwise and are subject to investment risk, including loss of principal.
Investment products are not government insured. Past performance is not an indicator of future performance. US persons (US Citizens; US Green Card Holders;
Resident Aliens subject to US income taxes for IRS purposes) are not eligible for any of the investment products introduced by Mashreq unless stated otherwise. This
report is for distribution only under such circumstances as may be permitted by applicable law. Neither Mashreq nor its officers, directors or shareholders or other
persons shall be liable for any direct, indirect, incidental or other damages including loss of profits arising in any way from the information contained in this report. This
report is intended solely for the use by the intended recipients and the contents shall not be reproduced, redistributed or copied in whole or in part for any purpose
without Mashreq’s prior express consent.
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