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Capital Protection Certificate with Digital Plus Participation

The fixed income space remains challenging for investors. Only a few months ago, the market believed in a continuing normalization of interest rates, but fast forward to today and hardly anyone believes rates will rise in 2019.

To navigate through this challenging low-yield environment in the developed world, investors may wish to look at unconstrained fixed income strategies. These strategies are benchmark agnostic, which gives investors broad flexibility as they are not tied to any single fixed income sector.

The ability of the manager to have freedom in selecting investments can be a key source of alpha. By maintaining shorter durations than core bond funds, such unconstrained fixed income funds can eliminate interest rate risk.

Investors looking to invest in such strategies may consider the JB 100% Capital Protection Certificate with a 9% Bonus and Participation on the PIMCO GIS Income Fund (EUR), which is currently in subscription. The underlying fund follows a flexible multi-sector fixed income strategy with a focus on credit. It is managed with the primary goal of maximizing income while at the same time maintaining the principal.

  • On the final fixing day, if the underlying fund is trading at or above the strike level (100%) up to the defined bonus performance level (109%), the investor receives a coupon of 9.00% in addition to the invested amount (100%).
  • If the fund is trading above the bonus performance level (109%) on the final fixing day, the investor participates in the full performance of the underlying fund, with no upside limit.
  • If the fund is trading below the strike level (100%) on the final fixing day, the invested amount is fully repaid to the investor due to the capital protection.


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