BNP Paribas targets 8% return with structured fund

BNP Paribas has gained regulatory approval to launch a UCITS compliant European structured product, aiming to generate an 8% return per annum.

The IFSL BNP Paribas Defined Return Europe Opportunity fund, slated to launch later this month, is a six year auto-call product linked to the EURO STOXX 50 index. The fund will be managed by THEAM, a subsidiary of BNP Paribas Investment Partners. The fund will aim to produce an 8% annual return via a coupon, seeking to benefit from investing across defensive European blue-chip companies. BNP Paribas said the fund is a lower risk alternative to direct equity investment. Counterparty risk will be mitigated by BNP posting collateral for the fund in the form of cash and AAA rated go...