KT ZMICO Securities has issued five types of structured notes with underlying securities in the SET50 for institutions and high net-worth investors.
The company sees the structured notes as another flagship product to boost revenue in the second quarter.
M L Thongmakut Thongyai, managing director of KT ZMICO Securities Co Ltd (KTZ) said, “The special characteristics of structured notes, such as the opportunity to gain higher yields (than from bonds or bank deposits interest rates), a principle protection function and the chance to invest in the chosen stock at a desired price, has made structured notes more popular among investors throughout the years.”
The company will introduce five types of short-term structured notes with underlying stock in the SET50 for institutions and high net-worth investors. The company said it expected to realise revenue from structured notes starting from the second quarter of 2019 onwards.
The five types of KTZ structure notes are Bull Equity Linked Note (Cash settlement), Bull Equity Linked Note (Stock settlement), Bull Protection Note (Cash settlement), Bull Protection Note (Stock settlement) and Bull Principal Protected Note.
Given that the Bull Principal Protected Note was designed to protect the principle value and thus has the lowest risk, the company in a release said it was suitable for inexperienced investors who seek higher returns. If the underlying stock price rises, then the returns could be higher than bank deposit interest.
The minimum investment value for these structured notes is Bt4 million, with the holding period starting from a month and lasting as long as nine months.
“KTZ offers a range of structured notes to cater to investors’ investment preferences and risk diversification objectives,” said Thongmakut. “As structured notes are considered as a relatively new and complex financial product in the Thai capital market, our investment consultants were trained and are well-prepared to offer advice and assist clients to be able to fully understand the product before making investment decisions.”
KTZ has been assigned a national long-term rating of “A+(tha)”, a national short-term rating of “F1+(tha)” and outstanding senior unsecured debt at “A+(tha)” by Fitch Ratings (Thailand) Limited. Moreover, the company is also a subsidiary of Krung Thai Bank, which holds a large client base, allowing KTZ to offer full-services to serve clients across various segments.