JP Morgan launches Confidence notes in Singapore

JP Morgan in Singapore has launched the JP Morgan AsiaConfidence Notes Series 3, which is designed to give exposure to the performance of four Asian equity markets comprising China, Hong Kong, Singapore and Taiwan.

The two-and-a-half year non-principal protected notes, which are denominated in both Singapore and US dollars, offer a quarterly fixed coupon of 7.2% pa (SG$) or 8.2% (US$) until the occurrence of early redemption or maturity. The notes are linked to four Asian indexes comprising the MSCI Sing Cash IX, the Hang Seng China Enterprises, the Hang Seng and the MSCI Taiwan.

The mandatory redemption feature is activated if on any of the 10 valuation dates, bar the final, the closing levels of all four of the indexes in the basket - either concurrently or separately on different valuation dates including preceding ones - is equal to or greater than their respective barrier levels (100% of strike level). If the early redemption occurs the investor will receive 100% of the original investment and the fixed coupons accrued.

Redemption at maturity is dependent on whether or not the straggler, the index which generates the lowest result on the final valuation date, has breached a 50% trigger level (50% of strike level) on any valuation date. If the straggler has not breached the barrier level then the investor will receive the original investment and the fixed coupon amount. If the barrier is breached the investor will receive the original denomination multiplied by the final index level of the straggler over its strike level, capped at 100%, and the fixed coupon amount. Specified denominations of the notes are SG$1000 or US$1000, with a minimum purchase of 50 notes.