A very fluctuating annual return with SG Duo France

A very fluctuating annual return with SG Duo France |  Photo credits: iStock

A very fluctuating annual return with SG Duo France | Photo credits: iStock

Société Générale is offering SG Duo France until March 31 (Isin code: FR0014006D19), debt securities with a nominal value of 1,000 euros with a maximum maturity of ten years, the performance of which depends on that of the SBF Top 50 ESG EW Decrement 50 points index, representative of the French equity market. A flat-rate deduction of 5% per year is made in exchange for the reinvestment of dividends.

At the end of the first two years, the investor receives an annual coupon of 3% regardless of the performance of the index. After two years, an early redemption can take place every year if the index has not fallen by more than 5% from the initial recognition date, resulting in an annual remuneration of 4% per year. elapsed since the origin. Under this assumption, the actuarial rate of return would be 6.58%. Otherwise, at the end of the ten years, on May 4, 2032, the saver will have, in addition to the 6% paid at the end of the second year, a capital gain of 40% in the event of a maximum decrease of 5% in the index, for an annualized return of 3.99%. For a drop of between 5% and 50%, the saver will only receive the initial 6%, ie an annual return of 0.61%. With a decline greater than 50%, a loss less than 6 points received at the end of the second year compared to that of the index will be noted.

The notice to invest

SG Duo France’s annual compensation will fluctuate greatly depending on the repayment date, ranging between 0.6% and 6.6%. Assuming a lifespan of between 2 and 4 years, a probable assumption, the yield would be attractive in view of the low remuneration offered by the bond market. This support should therefore improve the overall performance of a bond portfolio, since the risk of capital loss is very low. The index would have to fall steadily for 10 years and be at a historically very low level at maturity.

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