KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

1 December 2022: Wealth Product Ideas

3 Scenarios

  1. Early knock-out after 1st month = receive 100% notional + eligible coupons
  2. No knockout; underlying is at or above strike on final observation date = receive 100% notional + final coupon
  3. No knockout; underlying is below strike on final observation date = receive 100% notional converted to shares at strike + final coupon

AstraZeneca, Johnson & Johnson and Pfizer Price Performance

(Source: Bloomberg)

  • The healthcare sector has long been recognized as one of the most reliable defensive industries
  • Regardless of how the economy performs, hospitals, drugmakers, medical device companies, and other companies in the healthcare industry benefit from steady consumer demand
  • Short and medium-term CLN ideas with investment-grade companies to offer clients stable and enhanced yields
  • Min. investment: US$300K; AI only (exemption applies for min. investment of S$200K)

1-Year Healthcare CLNs

3-Year Healthcare CLNs

Outcome 1 (Positive) – No Credit Event

  • Investor receives quarterly coupons till maturity
  • Upon maturity, investor receives 100% of principal + final coupon

Outcome 2 (Negative) – Credit Event Occurs

  • Coupon payments will cease, including the coupon accrued
  • Investor will receive a Recovery Value, which is determined by Calculation Agent, the issuer, subject to a minimum of zero – calculated by (i) the nominal value, multiplied by redemption factor (ii) minus unwind costs

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