Towards an attractive annualized return with H Performance 44

Hedios Patrimoine markets until June 30 H Performance 44 (Isin code: FR00140099P1), a financial instrument with a nominal value of 1,000 euros similar to a bond with a maximum lifespan of twelve years, whose performance depends on that of the index Euro iStoxx 50 Equal Weight NR Decrement 5%. The latter is made up of the fifty largest market capitalizations in the euro zone, on an equally weighted basis (i.e. 2% for each security). Its composition is reviewed annually and rebalancing takes place every quarter. A fixed levy of 5% per year is made in exchange for the reinvestment of dividends.

After one year, an early redemption can take place every year if the index has gained at least 10% compared to the date of initial recognition, with the key to a remuneration of 37% increased by 3% per year elapsed, i.e. a gain of 40% after one year. Otherwise, at the end of the twelve years, the saver will have a capital gain of 73% (37 + 3%x12) if the index has appreciated by at least 10%. Between +10% and –30%, the capital will be reimbursed, after deducting the costs linked to the investment. With a decline of more than 30%, a loss similar to that of the index will be observed.

Investing opinion

Assuming early redemption or at maturity, the annual remuneration offered by H Performance 44 will be between 4.8% and 40%. The percentage is therefore highly variable depending on the year of reimbursement. Due to the attractive medium-term valuations of Eurozone equities, a redemption should occur before maturity. The probability of losing a lot of money is low, because the index would not have to gain 10% for 11 years and it would have to be at maturity at a low level. We are therefore positive on this fund, which should improve the return/risk ratio of your portfolio.