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Capital Guaranteed Bonds

Combine an investment in a Saxo Bank Managed FX Fund with a capital guarantee at maturity. With every new issue Saxo Bank selects a specific currency and leverage profile which is packaged together with the capital guarantee.

If the bond fails to make gains at maturity, your initial investment is guaranteed back as described in the specific terms of issue for the bond.

Take full advantage of our Saxo Bank Managed FX Funds with the assurance of capital preservation guarantee at maturity through our Capital Guaranteed Bonds. Receive any gains in the fund on maturity of the bond and if the fund fails to make gains, your initial investment (or an agreed part of it) is guaranteed back at maturity.

Capital Guaranteed Bonds can also be cashed in before maturity for a redemption fee and taking in to consideration the loss of the capital guarantee.

Offering Document & Business Terms

Investing in the Saxo Bank Capital Guaranteed Bonds is governed by the General Business Terms, the General Terms for the Saxo Bank Guaranteed Bonds plus the Product Terms and Subscription form.

History

The successful Saxo Bank Managed FX Fund was launched in December 2000, aimed at customers interested in a diversification strategy by enabling them to participate in the global FX market. Since then, a number of variations of the fund have been introduced based on a number of leverage and base currency combinations to cater for investors having a different risk and base currency requirements.

Capital Guaranteed Bonds now offer investors all the success of the Saxo Bank Managed FX Fund with a guarantee of their investment capital, or an agreed part of it, back upon maturity.

Saxo Bank will issue Capital Guaranteed Bonds for selected leverage and currency variations of the Saxo Bank Managed FX Fund, at regular intervals based on demand. Specific Capital Guaranteed Bonds can be issued on request for investments in excess of USD 5 million or the equivalent in other (major) currencies.

Collateral investment

Capital invested in Capital Guaranteed Bonds can be used as collateral for trading margin-based products such as FX and CFDs (stocks on margin). We advise caution when using this feature as losses in these trades may mean we need to redeem your bonds prematurely on your behalf for which you will at least incur a redemption fee and will not be entitled to the capital guarantee.

The percentage of investment capital that can be used as margin trading collateral can differ for each issue of the bonds and is detailed in the specific terms of each issue.

Fees

The following fees apply to investments in Saxo Bank Capital Guaranteed Bonds:

  • Management Fee - An annual management fee of 2.00% of the amount under management is charged on a daily basis.
  • Performance Fee - A performance fee of 20.00% of the net profits is charged quarterly or upon exit from the fund.
  • Redemption Fee - In case the Capital Guaranteed Bond has to be redeemed by the investor before maturity, the capital guarantee is invalid and a redemption fee of up to 4% of the redemption value will be charged.