At Oval we have the belief that we are here to take care of you as users. We want to give you all the tools to understand new products but also open up to innovative ways to invest. This is why we believe this product is really a great way to diversify your portfolio. We called it Take Care as we want it to represent our mission but also because it is focused on the healthcare and pharmaceutical sector, towards scientific research and experimentation.
Like Italian Dream and Born in the USA, Take Care is a protected capital product, this time with a twist. Let’s discover all of its features, one at a time.
1. It protects your capital at maturity
By investing in Take Care, at its 5 years maturity you will receive your full initial investment no matter what happens in the market.
2. It gives you a 5% minimum return
We created a mix of our capital protected products and FixedRate, our users' favourite, to build a solution that gives a certain 105% of your money invested at the end of the 5 years. This means that for example, by investing €10,000, you will get a minimum of €10,500 at the end of the 5 years maturity.
3. Upside potential
Take care is designed to follow the performance of three among the largest pharmaceutical companies in the world: Roche, Sanofi, and GSK (GlaxoSmithKline). If these names aren’t familiar to you, we will be discovering more about them on our social media channels. These companies drive the industry for products, medical research and scientific experimentation. At maturity, it will give you back a return based on the worst performance of the three securities, with a minimum return of 5%. This means that overall the product will give you back at least 105% of your invested capital, even if the three companies are performing below this threshold. The maximum loss you will ever incur is 10% of your invested capital even if the underlyings drop more than 10%.
4. It is considered a low risk product
The KIID available in the app reveals a product with a risk level 1 out of 7, the lowest possible. This is because the product has a guaranteed return of 5% (1% per year). Also the companies selected are very large, well established and have had a long track record of stable earnings.
5. It is flexible
We understand that 5 years can be a long period of time but no worries, you can disinvest at any time after the first 100 days, at the product price that we show at the end of the day in the app.
What is the potential payout?
Capital Protected products are a way to see your money grow without the risk of losing the capital invested. If you compare the potential performance of Take Care to our Fixed Rate product assuming you invest in it for 5 years you can think of your potential return as per the KIIDs positive scenario as follows.
To better understand the scenarios let's go through a couple of examples as shown in the KIID:
- In the event where the lowest of three companies after 5 years is at 128% you will receive 100% + 5% + max(0%, 128% – 105%) = 128%
- In the event where lowest of three companies after 5 years is at 103% you will receive 100% + 5% + max(0%, 103% – 105%) = 105%
- In the event where lowest of three companies after 5 years is at 92% (they have lost value over time) you will receive 100% + 5% + max (0% ,92% – 105%) = 105%
Why healthcare and why these companies?
The product is designed to provide our investors with the ability to participate in the performance of the pharmaceutical market by selecting three of the largest companies that jointly have over 120 billion of global revenues. These three companies offer a good representation of the sector and are at the forefront of the fight against global diseases, with substantial investment in research and effective scientific experimentation.
Of the three companies in the index, Roche has been around for the longest time. Founded in October 1896 by the Swiss entrepreneur Fritz Hoffmann-La Roche, the company was immediately known for the introduction of vitamin preparations. In 1934, it became the first company in the world to market synthetic vitamin C supplements under the Redoxon brand name.
Sanofi is a relatively young company, founded in 1973, that already has vast fields of application. It deals with research and development, production and marketing of mainly prescription drugs, but also develops over-the-counter drugs. The company covers seven major therapeutic areas: cardiovascular, central nervous system, diabetes, internal medicine, oncology, thrombosis. It is also the world's largest vaccines producer through its subsidiary, Sanofi Pasteur.
GlaxoSmithKline is one of the most active pharmaceutical companies at a social and humanitarian level. In 2009, the company declared a 25% reduction in the price of drugs in 50 of the world's poorest countries. Since 2010, GSK has repeatedly ranked first among pharmaceutical companies in the Global Access to Medicines Index, a research program funded by the Bill and Melinda Gates Foundation. In 2014, an American LGBT rights defense group, the Human Rights Campaign, awarded GSK a 100% score in its annual Corporate Equality Index report.
You asked, we listened. Many of you wanted exposure to the pharmaceutical and healthcare market and we think this is an innovative and low risk solution to give everyone the opportunity to invest in the sector, help its growth and together take care of ourselves and our neighbours in the world.
The product is intended to be offered to retail investors who fulfill all of the criteria: they are informed and experienced in trading complex securities; they are looking for an investment opportunity that reflects an expectation that the underlying will the underlying will increase in value over time; they are able to bear a total loss of the amount invested and they have a medium-term investment horizon.