10% Guaranteed Structured Investment Note

Lisa Smith, BA (Hons), CeFA
By

The COVID-19 pandemic has triggered a dramatic fall in the price of energy stocks.

In many cases the share prices have plunged by 50% or more leaving the market at rock bottom.

The outlook is bleak for energy stocks, but they have fallen from grace and rebounded before.

That’s why now is a good opportunity to buy and why financial firm de Vere has launched the 10% guaranteed structured investment note.

The note pays a fixed 10% annual return paid every six months, but interested investors need to act quickly as the offer closes on October 27.

How The 10% Guaranteed Structured Investment Note Works

  • The de Vere 10% guaranteed structured investment note has a three-year fixed term.
  • Income is paid at the rate of 5% every six months regardless of how the underlying stocks perform.
  • At each six month interval, the stock performance is reviewed and if all the stocks are trading at the strike price or above, the note triggers early maturity.
  • If the autocall triggers early maturity, investors get 100% of their capital back
  • If the note reaches the end of the three-year term without triggering the autocall, if the worst-performing stock is on or above 75% of the strike price, then 100% of capital is returned to investors
  • Should the worst performing stock is trading at less than 75% of the strike price, then capital is returned pro rata the percentage of the strike price, ie if the stock is trading at 50% strike price, then 50% of investment capital is returned

What Are The Note’s Underlying Stocks?

The note is based on the performance of four key energy stocks:

BP

The stock price has crashed to a 25 year low as the world’s thirst for fuel dried up during the COVID-19 pandemic lockdown and threatens to remain low for some time to come.

On the upside, BP invests in green technology and is working with global partners to develop energy and green efficient ways to power homes, factories and cars.

Exxon Mobil

Exxon is a global giant in the oil and gas sector and a leading rival to BP.

The share price is under siege from the same CPVID-19 stresses as BP, but both 

Schlumberger

Schlumberger does not produce energy but develops the technology and infrastructure to find fresh wells, manage oil fields and to make customers more efficient.

COVID-19 problems saw the stock price by almost two thirds, but the company reacted by closing offices and laying off staff to cut spending.

The company is planning to grow technology support for the oil and gas sector, which provides Schlumberger with potential for to increase revenues when the pandemic eases.

Valero Energy

A US refinery business mainly converting fracking crude out of Texas into energy and fuel products.

10% Guaranteed Structured Investment Note Summary

The de Vere 10% Guaranteed Structured Investment Note offers protection against risk and a high return for investors looking for opportunities in the troubled oil and gas sector.

The aim is stocks like BP and Exxon Mobil have bottomed out after the shockwave of the COVID-19 pandemic saw energy share prices tumble. 

An annual return of 10% paid as an income of 5% every half year exceeds what the same money invested with banks and less complex investments can offer.

deVere 10% guaranteed structured investment note

About deVere 

Founded in 2002, deVere Group is an international financial firm with more than 80,000 clients across 100 countries.

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