Noted: All about Raison’s structured notes

We are excited to announce our new section, #Noted, dedicated to one of the main products of the international investment holding Raison — structured notes. In regular publications, we will share key information on structured notes, prepared by a Raison financial analyst for our clients.

What is a structured note?

It is a combination of securities, currencies, and derivatives, packaged into a single product by an investment company for the convenience of investors. A note has a basket of underlying assets. The investor’s return depends on their performance. Underlying assets can include stocks, indices, and currencies.

Our structured products

Since 2023, we have launched five structured notes across different sectors: semiconductors, cybersecurity, minerals, gold mining companies, and raw materials market giants. In upcoming publications, we will explain why we chose each sector and share the returns our clients have already received from the first coupon.

Semiconductors:

• ISIN (International Securities Identification Number): XS2628855426
• Coupon rate: 14% per annum
• Coupon barrier: 50%
• Investment amount: 100,000 USD*

After the first 3.5% coupon payment, the client earned 3,500 USD for the quarter. The value of their portfolio then increased to 103,500 USD. The underlying assets did not drop below the coupon barrier.

Structured Note Potential: The AI market continues to grow rapidly, and semiconductors are an integral part of this market. With the fast growth in data volumes and the development of neural networks, chips will become increasingly in demand.

Companies in the underlying assets:

• Advanced Micro Devices, Inc. (AMD) — produces processors, GPUs, and chipsets.
• Supermicro (SMCI) — manufactures motherboards, cases, power supplies, and cooling systems.
• Enphase (ENPH) — produces solar microinverters, batteries, and EV charging stations.
• Qualcomm (QCOM) — creates semiconductors and software for wireless technologies.

Cybersecurity:

• ISIN (International Securities Identification Number): XS2697202633
• Coupon rate: 12% per annum
• Coupon barrier: 55%
• Investment amount: 100,000 USD*

After the first 3% coupon payment, the client earned 3,000 USD for the quarter. The value of their portfolio then increased to 103,000 USD. The underlying assets did not drop below the coupon barrier.

Structured Note Potential:

In the future, the unpredictability of cyberattacks will become a major issue. The digital transformation across all industries and spheres of life is leading to an increasing number of connection points and vulnerabilities.

Companies in the underlying assets:

• CISCO (CSCO) — one of the leaders in cybersecurity.
• Palantir (PLTR) — integrates internal and external cyber data sources to enhance cybersecurity.
• F5 Networks Inc. (FFIV) — specializes in application security and cloud management.
• Crowdstrike Holdings Inc. (CRWD) — among the top 10 cybersecurity companies.

Minerals:

• ISIN (International Securities Identification Number): XS2697202989
• Coupon rate: 14% per annum
• Coupon barrier: 50%
• Investment amount: 100,000 USD*

After the first 3.5% coupon payment, the client earned 3,500 USD for the quarter. The value of their portfolio then increased to 103,500 USD. The underlying assets did not drop below the coupon barrier.

Structured Note Potential:

Since the beginning of the year, there has been an increase in demand for commodities. Higher growth rates are expected in the future, which will drive the stock prices of commodity companies higher.

Companies in the underlying assets:

• Albemarle (ALB) — one of the largest lithium producers in the world.
• MP Materials (MP) — the largest producer of rare earth metals in the USA.
• Rio Tinto (RIO) — one of the world's largest iron ore, aluminum, and other valuable metals and minerals mining companies.
• Kinross Gold Corporation (KGC) — a leading gold mining company.

Gold Mining:

• ISIN (International Securities Identification Number): XS2697202716
• Coupon rate: 10% per annum
• Coupon barrier: 55%
• Investment amount: 100,000 USD*

After the first 2.5% coupon payment, the client earned 2,500 USD for the quarter. The value of their portfolio then increased to 102,500 USD. The underlying assets did not drop below the coupon barrier.

Structured Note Potential:

Gold mining company stocks have high growth potential. Persistent inflationary risks, combined with high global debt growth, make gold a priority safe-haven asset for investors. Geopolitical escalation has ensured strong demand for gold from the governments of developing countries.

Underlying assets:

• AngloGold Ashanti (AU) — a global company with a diverse portfolio of operations, projects, and exploration activities across nine countries on four continents.
• Freeport-McMoRan (FCX) — involved in gold, copper, and other metals mining.
• Eldorado Gold (EGO) — a producer of gold and base metals.
• Kinross Gold Corporation (KGC) — one of the largest gold producers in the world.

Raw Materials Market Giants:

The last structured note we want to highlight is the note in the raw materials market giants sector, which has recently experienced early redemption or autocall. In the case of autocall, the client receives the total coupon payments and their initial investment back.

• ISIN (International Securities Identification Number): XS2697198856
• Coupon rate: 14.2%
• Coupon barrier: 65%
• Investment amount: 100,000 USD*
• Structured Note Early Redemption: The note was redeemed early. After the first 3.55% coupon payment, the client earned 3,550 USD for the quarter. In total, over 9 months, the client received 10,650 USD and returned the principal investment with the autocalibration.

Structured Note Potential:

The core business of the selected companies is mining gold, silver, copper, diamonds, molybdenum, nickel, and aluminum. Copper demand is expected to double by 2035. During periods of geopolitical and economic instability, gold acts as a safe-haven asset, and the shares of gold and silver producers are in high demand.

Underlying assets:

• Freeport-McMoRan (FCX) — the 3rd largest copper producer in the world, one of the leading producers of gold and molybdenum.
• Alcoa (AA) — the 8th largest aluminum producer in the world.
• Anglo American (AAL) — a major producer of diamonds, copper, and platinum group metals.
• Newmont (NEM) — the world's largest gold producer, accounting for about 6% of all gold.

#Noted — is our ongoing series about the life of structured notes. To learn more about what structured notes are, join the Raison webinar on structured notes via this link: https://lu.ma/7aaeq5xo?tk=pgjDDA. And to find out how and why you can restructure a high-risk note or a note whose underlying asset is subject to market, geopolitical, or other risks, watch the Raison webinar on note restructuring: https://lu.ma/gdkhq00p.

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Disclaimer: “The use of the trademark is for informational purposes only and does not imply endorsement or affiliation. Additionally, the information in this communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities".