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International Titans Autocall plus FTSE Protection
April 2015
Investment Summary
The Titans - bridging the divide between shares and indices
Product Facts and Features
Key Dates
Issuer and Counterparty:
Strike Date: 2 April 2015
Final Observation: 6 April 2021
Maturity Date: 13 April 2021
Nomura (Credit Ratings*: S&P A-; Moody’s Baa3;
Fitch A-)
Term:
6 years
Investment Structure:
Quarterly Autocall plus Protection
Autocall opportunities:
Quarterly
Autocall Trigger:
100% of initial level
Coupon Rate:
2.50% quarterly
Capital Risk:
Not capital protected
Capital Protection Barrier: 60% final level (European style) on FTSE(UKX)
Underlying Basket:
AT&T (T), HSBC Holding Plc (HSBA), Vodafone
Group Plc (VOD), Total SA (FP), FTSE 100 (UKX)
Subscription Period:
25 February 2015 – 1 April 2015 (4.30pm BST)
Nomura: provides a range of services through the capital markets including
equities and fixed income trading, brokerage, underwriting, offering, secondary
offering and private placement of securities. The investment banking arm provides corporate and leveraged financing. Nomura's four business lines (global
markets, investment banking, merchant banking and asset management) are
coordinated globally but each European operating entity is incorporated and
regulated separately and reports to local management as well as Tokyo-based
business leads. Capital adequacy: Basel 3 Tier 1 Capital Ratio as at 31.12.14**:
13.3% Capitalisation as at 31.12.14**: ¥2.6trn
Benefits
 Autocall feature linked to stock performance potentially shortens the
investment term
 Early maturity provides an opportunity to re-assess client’s wealth strategy
 Minimal market growth needed to deliver enhanced returns
 Daily pricing and trading available
Risks
 The return is limited to the pre-defined investment terms
 There is a risk to capital should one of the indices breach the maturity
barrier or the issuer defaults or the issuer default
Currency: GBP
ISIN: XS1197336008
Investment Description
Early Maturity opportunities – share
performance trigger
Shares of 4 major International
stock-market listed companies will
trigger the autocall. If on any quarterly
observation date the closing levels of all
the shares are at or above their initial
levels, the investment will mature and a
coupon of 2.50% for each quarter
elapsed will be paid.
At Maturity – index performance trigger
The performance of the FTSE100 index
will determine the security of the capital
at maturity. If at maturity the shares are
not all above 100%, then so long as
closing level of the FTSE100 is at or
above 60% of their initial level, 100% of
capital is repaid.
If the closing level of the FTSE100 is
below 60% of its initial level, capital is
reduced with reference to the FTSE100,
on a 1 for 1 basis (e.g. if the FTSE is at
40% of its initial level, 40% of the capital
will be repaid).
How does the investment work?
First Observation
Are all underlyings at or above 100% of initial?
Y
Full capital paid + quarterly coupon of 2.50%
= Early Maturity
Y
Full capital paid + quarterly coupons (2.50%) for
each quarter year elapsed = Early Maturity
N
Observations
2 to 23
Are all underlyings at or above 100% of initial?
Final Observation
Are all underlyings at or above 100% of initial?
N
Y
Full capital paid + all quarterly coupons (60%)
N
Is FTSE at or above 60% of initial level?
N
(*) Source: Bloomberg: as at 17.2.15
(**) Source: Issuer 17.2.15
Y
100% capital paid no coupon
Capital reduced on 1-for-1 basis of FTSE
(e.g. if FTSE is at 40% of its initial level, 40% of
capital will be repaid)
IDAD Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. For Professional Clients and Eligible Counterparties as defined by the FCA only. This
material should be read and understood along with the Issuer’s Factsheet and the Term Sheet, which is available on request. All rights reserved. No part of this publication may be reproduced, copied or distributed without the
prior permission in writing of IDAD. Returns from the structured products are at risk in the event of any of the institutions who provide securities for these products default on their financial obligations
Suitability
Rationale
Suitable for investors who:
 are seeking higher returns than current cash rates
 understand the risk associated with single stock pricing & performance
 understand and accept there is a risk to capital
 are looking to invest for the medium or long term, being happy to remain
invested until maturity
 are slightly bullish on equity markets in the short term but are seek an
investment that is designed to reduce single stock risk at maturity
 wish to use this investment as part of a well-diversified portfolio
 understand that the returns are fixed and that they will forgo growth in the
stocks / markets which exceed that fixed level
 understand the risk to capital in the event of counterparty default
 understand that should they need to sell their investment accept that the
trading price may mean they get back less then they invested
The classic autocall is one of the most popular
structured product pay-offs and in recent
years there has been a trend towards using
corporate stock as a performance link. This
provides an excellent opportunity for high
returns but can increase the risk to capital.
Share prices reflect not only the value of a
company but reflect sector specific events and
market perception. Consequently shares can
be more volatile than a market index. A
selection of four, high profile, large cap
dividend paying stocks will determine the early
maturity event. An index provides the capital
protection. The FTSE has been selected as the
capital protection link. Marginal growth only
is required to trigger an early maturity and
with frequent call opportunities, this a
favoured pay-off with advisers. The
combination of higher risk stocks tempered by
index linked protection makes an attractive
solution. The coupon snowballs, accruing up
to maturity, be that before the end of the
fixed term or not, so long as the criteria
determining both the both coupon and capital
payment is met.
The Underlyings*
AT&T INC (T) is a communications holding company. The Company, through its
subsidiaries and affiliates, provides local and long-distance phone service, wireless
and data communications, Internet access and messaging, IP-based and satellite
television, security services, telecommunications equipment, and directory
advertising and publishing.
HSBC Holding Plc (HSBA) is the holding company for the HSBC Group. The Company
provides a variety of international banking and financial services, including retail and
corporate banking, trade, trusteeship, securities, custody, capital markets, treasury,
private and investment banking, and insurance. The Group operates worldwide.
Vodafone Group Plc (VOD) is a mobile telecommunications company providing
a range of services, including voice and data communications. The Company operates
in Continental Europe, the United Kingdom, the United States, Asia Pacific, Africa and
the Middle East through its subsidiaries, associates, and investments.
TOTAL SA (FP) explores for, produces, refines, transports, and markets oil and
natural gas. The Company also operates a chemical division which produces
polypropylene, polyethylene, polystyrene, rubber, paint, ink, adhesives, and resins.
Total operates gasoline filling stations in Europe, the United States, and Africa.
The FTSE 100 Index (UKX) is a capitalisation-weighted index of the 100 most highly
capitalised companies traded on the London Stock Exchange. The equities use an
investibility weighting in the index calculation. The index was developed with a base
level of 1000 as of December 30, 1983.
*Source: Bloomberg Feb 2015
For further information please
contact IDAD at:
email: [email protected]
telephone: +44(0)1730 263943
or visit our website www.idad.biz
Source: Bloomberg Feb 2015,
Data period: 30.01.2010 to 30.01.15
The Underlyings - Relative 6 year Performance
80.00%
60.00%
40.00%
20.00%
0.00%
-20.00%
-40.00%
AT&T (T UN)
HSBC (HSBA LN)
Vodafone (VOD LN)
Total SA (FP FP)
FTSE (UKX)
IDAD Limited is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. For Professional Clients and Eligible Counterparties as defined by the FCA only. This
material should be read and understood along with the Issuer’s Factsheet and the Term Sheet, which is available on request. All rights reserved. No part of this publication may be reproduced, copied or distributed without the
prior permission in writing of IDAD. Returns from the structured products are at risk in the event of any of the institutions who provide securities for these products default on their financial obligations