What is KIKO Basket ELN?
It is a type of ELNs with an investment period of 6 months, which allows you to earn a higher return than general notes investment. However, your return will be based on the underlying asset, investment horizon, strike level, knock-in and knock-out level.
KIKO Basket ELN combines featured of KIKO ELN and SMILE ELN. The investor can choose up to 3 favorable shares from SET50, while Knock-in (KI) and Knock-out (KO) levels are similar to KIKO ELN. However, KI Event will be observed daily (Trade Date + 1), while KO Event will be observed monthly (Monthly KO).
Why KIKO Basket ELN?
- Higher annual return than other fixed-income securities with your chosen risk-level
- Opportunity on high yield on short term investment during market sideways.
- Relatively low KI level, thus creating a wider buffer benefit when stock price declined.
Who is suitable for KIKO Basket ELN?
- Investors with risk tolerance who want to generate high return.
- Investors who want to accumulate favorable stocks a few at a time
Maximum profit and loss for KIKO Basket ELN
- Highest Profits = Yield depending on your chosen risk-level
- Highest Losses = Standard Investment in stock market when receive stock back at Strike Price
Calculation Examples
After the investor has opened an ELN account, the first thing investor needs to know before start investing in ELNs must be the prices and yields of our products. Investors can follow up on the indicative price sheet of KIKO Basket ELN and seeking additional advice from the investment advisor.
Pricing Sheet: KIKO Basket ELN
| Pricing Sheet: KIKO Basket ELN | |||
|---|---|---|---|
|
Trade Date |
21 February 2565 |
Strike Level (%) |
100% |
|
Issue Date |
23 February 2565 |
Notional Amount |
10,000,000 Baht |
|
Valuation Date |
19 August2565 |
Settlement Method |
Physical / Cash Delivery |
|
Maturity Date |
23 August 2565 |
No. of holding days |
181 Days |
| Observe Date | 21 March 2565 | Yield Payment Date | 23 March 2565 |
| 21 April 2565 | 25 April 2565 | ||
| 19 May 2565 | 23 May 2565 | ||
| 21 June 2565 | 23 June 2565 | ||
| 21 July 2565 | 25 July 2565 | ||
| 19 August 2565 | 23 August 2565 | ||
| Underlying | Spot Price (THB) | Knock-in Price (THB) | Knock-out Price (THB) | Strike Level (%) | Strike Price (THB) | Annualized Yield (Before Tax) | Number of shares for delivery |
|---|---|---|---|---|---|---|---|
| AAA | 40 | 26 | 40 | 100% | 40 | 14% | 250,000 |
| BBB | 20 | 13 | 20 | 20 | 500,000 | ||
| CCC | 60.50 | 39.32 | 60.50 | 60.50 | 165,289.256198 |
Remark:
Spot Price is the AAA, BBB and CCC share close price in the day before the example price sheet will only be use for calculation reference. It is not the actual price that investor will get. Knock-in level, Knock-out level, Strike level, Annualized yield, and Issue price are the only factors that investor will get from the pricing sheet. (These factors do not depend on the spot price.)
When you start investing in ELN, we will call this date “Trade Date”
| 1. Trade Date (21 February 2565) | |
|---|---|
| Strike Price (100% of Spot Price) | 40 Baht |
| 20 Baht | |
| 60.50 Baht | |
| มูลค่าที่ตราไว้ (Notional Amount) | 10,000,000 Baht |
| Knock-out Price (100% of Spot Price) | 40 Baht |
| 20 Baht | |
| 60.50 Baht | |
| Knock-in Price (65% of Spot Price) | 26 Baht |
| 13 Baht | |
| 39.32 Baht | |
| No. of Shares that will be delivered | AAA 250,000 Shares (10,000,000/40) |
| BBB 500,000 Shares (10,000,000/20) | |
| CCC 165,289.256198 Share (10,000,000/60.50) | |
| Annualized Yield (Before Tax) | 14% |
| Return (Before tax) | 116,660 Baht [10,000,000 × (14%/12)] |
| No. of holding days | 181 Days |
| **Observe Knock-in date within the next day (Trade Date + 1) | |
| 2. Issue Date (23 February 2022) is Trade Date 2 Working Days | |
|---|---|
| Money will be transfer to CIMBS account for buying KIKO Basket ELN | |
| Notional Amount | 10,000,000 Baht |
| 3. Observe Date is viewing yield date 2 Working Days | |
|---|---|
|
Observe Date is the price viewing date to determine the return that investors will receive every 1 month until the Valuation Date, the investor may receive different returns in each scenario. Giving an example of 4 cases as follows. |
|
|
Case 1 (26 > AAA < 40) (13 > BBB <20) (39.32 > CCC < 60.50)) Knock-in > Spot Price < Knock-out The stock price does not occur KO Event and KI Event during Observation date (until Valuation Date). |
Investor receive10,000,000 Baht in cash and Monthly Return of 6 months in cash 699,960 Baht (116,660 × 6) |
|
Case 2 (AAA ≥ 40) (BBB ≥ 20 (CCC ≥ 60.50) Spot Price > Knock-out Early redemption event taken when the stock price does occur KO Event in the third month of Observation date. |
Investors receive 10,000,000 Baht in cash and Monthly Return of 3 months 349,980 Baht in cash (116,660 × 3) |
|
Case 3 (AAA < 40) But (AAA ≥ 40) (BBB ≥ 20) (CCC ≥ 60.50) KI Event But Spot Price ≥ Strike Price The stock price does occur KI Event daily but equal or higher than Strike Price at Valuation Date. |
Investors receive10,000,000 Baht in cash and Monthly Return of 6 months 699,960 Baht in cash (116,660 × 6) |
|
Case 4 (AAA ≤ 40) (-10% BBB ≤ 20) (-50% CCC ≤ 60.50) KI Event And Spot Price < Strike Price Stock prices in the basket occur KI Event and lower than Strike Price at Valuation Date. Least performance share in the basket will be choosing (e.g. the least performance is CCC). |
Investors receive 165,200 CCC Shares and 5,399.9941 Baht in (Odd lot 89.2561 x 60.50) and Monthly yield of 6 months 699,960 Baht in cash (116,660 × 6) |
| 4.Valuation Date (19 August 2022) | |
|---|---|
| The valuation date is the final date to summarizing the returns that investors will receive but if the stock price does occur KO Event (example in Case 2), the investor will receive a return according to an early redemption date. | |
| 5. Maturity Date (23 August 2022) | |
|---|---|
| Investors receive return according to the case in Valuation Date | |
Overall Return
Disclaimer:
The Structured Note is offered to High-Net-Worth investors (HNW), Ultra High-Net-Worth (UHNW) and institutional investors (II). It is a high-risk and complex product. The value of the Structured Note depends on uncertain factors. Investors may lose the principal in whole or part or receive lower-than-expected returns. Structured Notes do not have a secondary market for trading and have transfer restrictions as specified by the terms and conditions. Please understand the product's characteristics, the conditions of return, and the risks involved, and seek additional advice before making an investment decision.