SG corporate and investment banking
Equity derivatives are often seen as a French speciality and, as if to prove that point, the award, which was launched this year, has gone to a French house. In the past few years, SG CIB has consistently innovated and led the market. It is a leader in European exchange-traded funds and commands about 18% of the global warrants market, having launched the first warrant listing on the Paris Bourse in 1989 on the Alcatel share, followed by expansion on all the main European markets. Today it lists warrants on 13 stock markets worldwide.
SG launched its Enhanced Constant Proportion Portfolio Insurance (Enhanced CPPI) to overcome the difficulties faced by investors trying to access alternative investment management, including offshore regulatory barriers and the lack of transparency. The product offers guaranteed capital at maturity, an annual 1% coupon and 70% of the performance of a fund that invests in two types of assets: cash and a Lyxor index tracker, an SG subsidiary.
SG designed Presto to meet the needs of investors looking for shorter-term investments that enable them to benefit from market take-off. A Presto over six years offers a guaranteed income of 7.5% per year and 100% of the increase of a core basket – which is optimised over time – without cap or average, and with an early exit possible from year three.
“We’ve been working very hard since 1988 to develop an extensive range of products,” says Christophe Mianné, global head of equity derivatives at SG CIB. “Many of our innovations have become milestones in the equity derivatives industry, such as our well-known correlation products and the alternative investment products launched through our dedicated asset management subsidiary Lyxor.”
Through its structured products, OTC deals, warrants and exchange-traded funds, SG CIB targets both distribution networks and institutional investors. “We’ve developed dedicated products for each market segment,” says Mr Mianne. “Our service goes far beyond the mere pricing and market making of the products, since our clients also rely on us for investment wrappers, marketing support and reports. This award highlights the depth and quality of our client relationships and team work to achieve this recognition.”
