And the search for yield continues into 2020!

In 2019 interest rates on deposits remained negative and investors with low appetite for risk continued to face the “permanent” problem of finding investments with positive yields. In this environment, two of our structured funds came to the rescue as they provided impressive equity-like returns and at the same time protected the initial capital of their investors from the volatile market conditions we experienced in the last two years. More specifically in the fourth quarter of 2019:

• The Ancoria 5-Year SEK Autocall 6.5% Fund, was autocalled in November, two years after its start date. The Fund was autocalled as the OMX Stockholm 30 Index closed on the observation date at 1,745.169, above the initial strike level of 1,633.658. As a result, policyholders who invested in this Fund received their initial investment amount plus an additional cash amount equivalent to a net return of 12.0% i.e. the conditional coupon of 6.5% for two years less the Fund management fee of 0.5% p.a., as specified in the Fund conditions.

• The Ancoria 5-Year EUR Autocall 1% Plus 4% Fund, denominated in Euro, was autocalled in December, as the Euro Stoxx 50 Index closed on the observation date at 3,648.13, above the initial strike level of 3,570.57. Consequently, policyholders who invested in this Fund received their initial investment amount plus an additional cash amount equivalent to a net return of 9% i.e. the conditional annual coupon of 4% for two years plus the fixed annual coupon of 1% for the second year, as specified in the Fund conditions.

• A new Structured Fund denominated in SEK, the Ancoria 5-Year SEK Autocall 6.75% Fund was launched in December, was subscribed in full and the subscription period had to close earlier. The Fund is denominated in Swedish krona and gives policyholders the opportunity to earn an attractive gross return of 6.75% per annum with a yearly early redemption feature as well as conditional capital guarantee at maturity, depending on the performance of the OMX Stockholm 30 Index. The Fund invests in structured notes issued and guaranteed by five different highly ranked financial institutions.

We aim to announce very soon a new Structured Fund denominated in Euro and additional Swedish krona structured funds should be announced later in the year, if market conditions are favorable. For any enquiries, please do not hesitate to call us at +357 22 551 300 or send an email to info@ancoria.com.