What are Discount & Autocallable Structured Certificates?
These certificates are a type of Yield Enhancement structured product that offers investors a predefined enhanced yield upon fulfilling certain conditions.
Issued by financial institutions and listed on SGX, the certificates are linked to single equities with a 6-months to 1-year maturity, with the original amount invested at risk.
Structured Certificates are classified as Specified Investment Products (SIP) hence investors should possess either a high level of investment knowledge or experience before transacting in them.
Both Discount & Autocallable certificates offer regular Distribution payments at a defined rate, subject to fulfillment of certain conditions.
Cash or Physical Settlement
For both Discount & Autocallable certificates, investors will receive the original amount invested at maturity subject to certain conditions on the underlying share price movement, however if it falls below a certain lower threshold, investors can potentially elect to receive physical delivery of the underlying shares at expiry.
Automatic Early Expiry
For Autocallable Certificates only, if the underlying stock rises above a certain upper threshold, the certificate might be redeemed early and investors will be returned their original amount invested.
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You can find them on Societe Generale Structured Certificates website here
An example of a Discount Certificate and Autocallable Certificates already listed on SGX is Alibaba DiscountSG240517 (Counter Code: XXX) and Alibaba AutocallSG241003 (Counter Code: EEJ) respectively.
For more educational information on Structured Certificates and the list of products available, refer to the financial institution’s website here or SGX website here. Investors can also find the listing documents containing the specific terms of each certificates on these websites:
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