What are Structured Certificates?

Structured Certificates are third-party issued financial instruments designed to meet the specific needs of investors such as yield enhancements and growth payoffs. Commonly traded in Europe, the returns of these products are defined by their payoff profiles that are dependent on the performance of an underlying asset such as a single stock or equity index.

Structured Certificates are:​

  • Structured products based on an underlying asset (such as a single stock or equity index) and contain derivative components. ​
  • Issued by third party financial institutions, usually investment banks.
  • Listed and traded on SGX-ST.  ​
  • Some examples of Structured Certificates include Yield Enhancement and Participation certificates which offer investors choices depending on their market expectations, investment goals and risk profile. ​

Characteristics of Structured Certificates

Local and foreign exposure

Offer exposure linked to local and foreign stocks or benchmark indices​

Ease of Access

Listed and traded on SGX with a continuous quotation by a Designated Market Maker (DMM), providing greater price transparency and liquidity​

Capital at Risk

Structured Certificates are not capital protected and investors bear the risk of the issuer defaulting

3rd Party

Issued by third party financial institutions (e.g. investment banks)

Short-term Expiry​

Short-term investment products with a finite lifespan usually between 3 months to 1 year​

Cash or Physical Settlement

Some certificates may offer choice of physical settlement under certain conditions​

Structured Certificates on SGX

SGX is the first exchange in Asia to offer trading in Structured Certificates, providing investors with enhanced access to a new range of products that cater to different investor profiles and needs.

Societe Generale

Structured Certificates Listed on SGX

Autocallable Certificates

 

Code 

SGX Counter Name 

Expiry Date 

Daily Theoretical 
Price1

Underlying 
Close Price2

Max. Distribution 
(p.a.)3

Distribution 
Barrier

Autocall 
Barrier

Knock-In 
Barrier

Underlying 
Asset

Initial Price 

Strike Price 

 

YAL

Xiaomi AutocallSG241104

04/11/2024

1.009

16.140

10%

6.7600

14.1960

10.9512

Xiaomi Corporation

13.52

13.2496

 

NIC

HSBC AutocallSG241104

04/11/2024

1.007

60.300

8.8%

29.0250

61.5330

53.4060

HSBC

58.05

57.7598

 

QAC

BYD AutocallSG241217

17/12/2024

0.971

201.80

12%

103.7000

217.7700

176.2900

BYD Company

207.4

207.4

 

TDQ

JD AutocallSG241003

03/10/2024

0.935

102.70

10%

56.7000

119.0700

86.1840

JD.com

113.4

102.06

 

EEJ

Alibaba AutocallSG241003

03/10/2024

0.911

71.650

10%

42.2500

88.7250

68.4450

Alibaba

84.5

81.965

 

WGX

Alibaba AutoCallSG240903

03/09/2024

0.882

71.650

10%

43.7500

91.8750

70.0000

Alibaba

87.5

84

 

Discount Certificates

 

Code 

SGX Counter Name 

Expiry Date 

Daily Theoretical 
Price1

Underlying 
Close Price2

Max. Distribution 
(p.a.)3

Distribution 
Barrier

Autocall 
Barrier

Knock-In 
Barrier

Underlying 
Asset

Initial Price 

Strike Price 

 

VID

Alibaba DiscountSG240517

17/05/2024

0.929

71.650

15%

41.0750

Alibaba

82.15

78.0425


IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com