A Brief Look on
High Yield Currency Linked Investment
High Yield Currency Linked Investment (HYCLI) is a structure product that links 2 currencies. You can combine an instrument similar to a term deposit and selling a currency put option, and receive the option premium in the form of additional yield, in addition to the traditional interest income. HYCLI is another option for you to invest in foreign currencies and at the same time receive potential high yield return.
Product Feature
|
Low initial
investment amount
|
Flexible tenor |
Potential high yield |
Alternative way to
hold other currency
|
With just USD 5,000
(or equivalent)you can
participate in HYCLI. |
Available tenor includes
1 week,2 weeks,1 month,
2 months,3 months and
6 months.You can choose
the suitable tenor based
on your investment amount. |
Higher yield potential
than normal deposits |
When you are prepared
to buy an alternative
currency,this product
can let you purchase
your preferred linked
currency(depending on
different currency
volatility situation)
ata pre-determined rate. |
How It Works
When you invest in HYCLI, you need to choose:
- Linked currency
- Tenor, strike rate and the corresponding pre-determined investment income
ICBC Macau will compare the strike rate and the related market rate (fixing rate) on fixing day to determine whether the investment currency or the linked currency is used to pay for your principal and investment income.
What Choices are there in HYCLI?
| We have around 10 currencies for you to choose freely,including HKD,USD,EUR,JPY,GBP,AUD,NZD,CAD,CHF and CNH.All you need to do is to choose 2 within the list,and you can initiate your own currency linked investment plan conveniently. |
*The availability of currency pairs is at the bank’s discretion.
Example
| Investment Currency: |
HKD |
| Investment Amount: |
HKD 500,000 |
| Tenor: |
1 month(31 days) |
| Linked Currency: |
AUD |
| Strike Rate: |
8 |
| Return: |
25%p.a. |
| Payoff at Maturity: |
HKD 510,616.44(if fixing rate is higher than or
qual to strike rate,principal and investment income willbe paid in HKD)
AUD 63.827.06(if fixing rate is lower than strike
rate,principal and investment income will be paid
in AUD) |
Risk and Return Analysis
|
Scenario
Analysis
|
Fixing
Rate
|
Payoff at
Maturity
|
Risk and Return Analysis |
| Market Value |
Profit/Loss |
Scenario 1
AUO appreciates |
8.1000 |
HKD
510,616.44 |
HKD
510,616.44 |
Profit
HKD 10,616.44 |
Scenario 2
Rate stays the same |
8.0000 |
HKD
510,616.44 |
HKD
510,616.44 |
Profit
HKD 10,616.44 |
Scenario 3
AUO depreciates |
7.7500 |
HKD
63,827.06 |
HKD
494,659.72 |
Loss
-HKD5,340.28 |
Notes:
- The above scenarios/examples are for demonstration only, we do not make representation on any future profit or loss
- For more product information please refer to the Product Key Fact Statement.
Wealth Management Centre Hotline: 8398 2896
Risk Disclosure
- This product which is a structured product (including financial derivatives) is issued by ICBC Macau. It is neither a deposit nor principal protected, and is not covered by the Deposit Protection Scheme in Macau.
Investment involves risks and the price of any investment products may fall as well as rise, and may fluctuate dramatically, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of investment. Past performance is no guide to its future performance.
- Investors should remain cautious when investing in this product, and should not make any investment decision based solely on this leaflet. Before making any investment decision, Investors should consider and evaluate their own investment objective, risk tolerance, investment experience, expected return, overall needs, financial situation and other criteria. Investors should understand the risk and nature of the transaction, and read carefully the terms and conditions in the related offering documents, particularly the risk factors, before investing so that you understand the nature of all of the risks, and if you have any question on the content of this document, you should seek other independent and professional advice.
- The above information is for reference only. This leaflet should not be construed as nor intended to constitute a recommendation, offer or commitment for any transaction of any security for any person, and does not intend to predict any investment performance.