At Oval we believe that every user should have access to the best investment products. During these times of high uncertainty and volatility in the economy we recognize that it is going to be important to provide new types of solutions on our platform. We have partnered with Cirdan Capital to create the first Protected Capital product on Oval, Italian Dream.
We chose Italian Dream as our first protected capital product which tracks the Italian economy through the FTSE MIB index for a few reasons. First of all, the index is recognizable to the many Italians who see information on its performance on the news every evening. Secondly because in these times of low economic activity where we are constrained to our homes, we believe that as Ovalers we should come together and invest in Italian companies and bet on the recovery of our economy. But not only that, since its peak of 25,477.55 on 19 February 2020, in the last quarter the FTSE MIB has seen its worst decline since 1998.
What does protected capital mean?
Your capital is 100% protected against losses when held to maturity. By investing in Italian Dream, at its 5 years maturity you will receive the full initial investment plus the potential additional amount based on the return of the underlying index. The biggest difference from our existing FixedRate product is that at any point in time, after the first 100 days where the capital is locked in, you can choose to sell your position at the index price at no extra cost.
How is the market price of the product calculated?
The product is designed to provide investors with the ability to participate in the upside performance of an index, in this case the FTSE MIB which consists of the 40 most traded stocks on the Italian stock market. If the performance of the underlying index drops, the principal investment is protected. It is important to highlight that the product only guarantees the initial capital back at maturity and thus if an investor sells or redeems their investment prior to maturity, they may receive a return of less than their original investment. In the case of Italian Dream though, this loss is capped at a maximum of 10%, no matter the drop of the index. If, instead, the FTSE MIB starts to pick up, the product prices the whole upside.
What is the potential payout?
Capital protected products are a great way to see your money grow without the risk of losing the initial capital invested. If you compare the potential performance of Italian Dream in 5 years to a term saving account by any Italian bank that today offers about 0,1% (average of the large banks saving account offers today) this can be your potential return.
What are we doing for Italy?
Given the difficult times, we have decided as Cirdan and Oval to give back to the Italian community. For every investment position opened in Italian Dream, we will buy and donate a medical mask to the Department of Infectiology and Immunology of the Fondazione IRCCS Policlinico San Matteo in Pavia. The hospital has been at the forefront of curing COVID-19 patients coming from the whole of Lombardy, the most affected region in Italy.
We believe that it is important to give something back both with a safe investment solution in difficult times and with an extra protection for those more in need. Hopefully Italian Dream will be a great way to help the even shyest of investors to start their journey with a fair and protected solution.
Product information documents are available in the app. Oval does not offer investment advice. If you are not sure that the product we offer is suitable for you, contact a financial advisor. Past performances are not indicative of future performances.