Conviction Note 18%, deVere Group Review

Lisa Smith, BA (Hons), CeFA
By

The Conviction Note 18% from deVere Group gives expats the opportunity to make significant profits while cushioning the investment from risk.

The aim is simple – stake some cash and benefit from higher than average growth providing the prices of the underlying stocks stay within a range of 65% to 95% of their strike date values.

If they do, the return is a phenomenal 4.5% a quarter.

What is the Conviction Note 18%?

The Conviction Note 18% is a structured note. Simply put, that’s an obligation to pay the investor a return based on the performance of underlying derivatives.

The note is a pre-packaged investment are designed to offer the average investor easy access to derivatives

You Could Receive unto 18% pa*

Derivatives are financial products set their value from the performance of underlying assets.

The Conviction Note 18% is an exclusive investment opportunity for clients of leading financial advice firm deVere Group.

The note tracks the performance of three leading bank stocks – Barclays, Lloyds Group and Wells Fargo.

About the deVere Group

deVere Group is a leading global financial advice firm with more than 80,000 clients across 100 countries and more than $10 billion under management.

The majority are expats and international investors.

deVere Groups financial muscle allows clients access to exclusive opportunities that would normally not be available.

Contact a deVere Group adviser now, click here.

How does the Conviction Note 18% work?

The ‘18%’ in the title comes from a pledge to earn investors growth of up to 18% a year.

Investors pay a minimum US$2,000 to buy into the note that runs for four years. The investment can be larger – increasing by $1,000 at a time.

Stock prices are based on the strike date – the day the investment starts.

Providing the stocks retain at least 75% of their strike data value at the end of the first quarter, the note pays 4.5% interest – this applies to each subsequent quarter.

The note matures early if the stocks are trading above 95% of the strike date prices at the end of any quarter, returning 100% of capital.

If the note fails to mature early, runs full course and the stock prices are more than 75% of their strike date value, the note pays 4.5% and returns 100% of capital.

However, if one of the stocks is trading at less than 65% of the strike date price, investors pick up a 1:1 return of the worst performing stock.

For example, if one of the stocks is trading at 50% of the strike date value, investors are only paid 50% of their investment.

Conviction Note 18% stocks

The Conviction Note 18% invests in three stocks – Barclays Bank, Lloyds Group and Wells Fargo.

Each is rated by deVere Group as likely to show a massive improvement as they pull out of the effects of Brexit and the COVID-19 shutdown.

Barclays

Barclays is a large British bank with a goal of achieving strong returns both in the UK and overseas.

Barclays has a large footprint, with an extensive consumer banking branch network and online banking presence. The bank also has top-tier investment and corporate operations.

If the Conviction Note 18% started on July 23, 2016 – allowing four years of tracking the stock – the current share price of 116.04p is 75.35% of the then value of 154p.

View the Barclays Bank stock performance

Lloyds Group

Lloyds is the UK’s largest bank, with a wide group of businesses covering consumer and commercial banking, insurance, and wealth management.

Brands include Lloyds Bank, Bank of Scotland, the Halifax, and Scottish Widows.

If the Conviction Note 18% started on July 23, 2016 – allowing four years of tracking the stock – the current share price of 30.34p is 57.08% of the then value of 53.15p.

View the Lloyds Group stock performance

Wells Fargo

Wells Fargo is one of the leading US banks with a history dating back to the Old West. The banks deals with one in three US households as customers.

The bank was listed as the fifth most profitable business in the US for 2019 by Forbes magazine.

If the Conviction Note 18% started on July 23, 2016 – allowing four years of tracking the stock – the current share price of $24.58 is 51.26% of the then value of $47.95.

View the Wells Fargo stock performance

Who is the Conviction Note 18% investment for?

The Conviction Note 18% is a doorway that gives consumers with modest funds access to a deal normally only available to individuals with larger sums.

Conviction Note 18% FAQ

Consumers may find the complexity of a structured note hard to unravel as they are uncommon investments.

To help, here the answers to some of the most asked questions about the Conviction Note 18%:

✅ When does the opportunity close?

The note closes on July 24, 2020.

✅ What is the strike date?

Fixed Strike date- the first day of the investment is called the “Strike Date” and all calculations are made based off the stock prices on this date.

✅ What is a structured note?

The Conviction Note 18% is an agreement between the investor and note issuer to borrow money over four years with interest paid quarterly, providing certain conditions are met. 

✅ When does the Conviction Note 18% mature?

If all stocks are trading above 95% of their strike date price the note pays a 4.5% coupon and matures early, returning 100% of capital. If the note runs to final maturity at the end of a four-year term and all the stocks are above 75% of their initial strike price, the note pays a 4.5% coupon and matures, returning 100% of capital.

✅ Is there a risk that investors could lose money?

Yes. If the issuer gets into financial trouble and cannot settle the debt, then investors lose their money. With the Conviction Note 18%, investors could also lose if one of the stocks trades at less than 65% of the strike date value.

✅ Can investors pull out early?

No. Capital is tied up for a four-year fixed term.

deVere Group CEO discusses Conviction Note 18%

Conviction Note 18% summary

The Conviction Note 18% offers up, down, and sideways protection for investors linked to a return of up to 4.5% a quarter – adding up to a possible 18% a year.

The deal is exclusive to deVere Group clients. To get advice from deVere Group regarding this investment, complete the form here.

For investors with cash to spare, the Conviction Note 18% presents a decent opportunity for high growth.

But the door is only open for a limited time as the call for cash runs out on July 24, 2020.

Get Financial Advice

We can put you in contact with a qualified specialist expat financial advisor based in your location. Click the button below to get the expert advice you need to make the best financial decisions.

Related Information

Below is a list of related articles you may find of interest.

Leave a Comment