Cube For Discretionary ManagersMay 27, 2014 - 10:36
Cube products are unbundled securities. They will be London or Irish Stock Exchange listed and Crest settled securities. Our standard process will be to have a 6-week pre-strike offer period through which investors can buy the notes. We will also ask the issuer to maintain the offer for a period after the strike if the issue has not sold out.
The issuer will trade once a day, and publish a daily price on Bloomberg. The issuer will also be able to offer the notes “live” to investors placing an order of more than $pound;1m.
In the pre-strike period the notes will be issued, and this is technically a secondary market period. This pre-strike period can be useful if you know that you have maturities coming up. All of our products will be issued with a retail brochure. This means that they are appropriate for both discretionary and advised clients.
We can work with you to develop new bespoke products. We can price up all structures ourselves, and so keep the banks honest. We will also put one bank up against another to make sure that we get keen prices.
Our bespoke product development proposition aims to ensure that you get the best deal for your clients, and also allows you to demonstrate that the product that you develop with us meets your client's needs.
We will arrange deals for a fixed fee. We will get paid by the bank, but will be open and transparent about what fee we receive from them.
When developing a product we will show you the risk/return of different shapes. This means that you can ensure that the product you are developing meets the needs of your clients, and importantly that you can demonstrate that you have done this.
Our analysis allows us to adjust for the issuer CDS so we can compare different banks.
We are able to do bespoke deals that would be capable of distribution to advised clients as well as discretionary ones.
If you do a bespoke product with us this product will be automatically loaded into our system, this means that you will have access to the updated fact sheet through the term of the product.
We can also offer a fair value on all bespoke deals using the Bloomberg pricing tools. This then allows you to check that the bank pricing remains realistic.
Free Research For Cube Clients
If you buy our products or ask us to arrange bespoke deals for you we will offer you and your research team access to our research. We have about 500 products loaded onto the system and are loading more all the time. Most of the products are retail, we are adding on the private placements as they are sent to us. The analysis is available on-line, and you will be able to download the factsheets.
Our analysis on existing products offers a set of quantitative measures that allow you to form an educated opinion.
Within reason, we will upload products that you already own, or that you are considering;
We are developing a “my portfolio” tool.This would allow you to identify products you own. You will then be able to see your portfolio
- You would have a personal timeline of events; we can add the probabilities to the events
- You can set alerts so that if a price rises above, or falls below a set level you are notified
- The alerts may also be linked to other calculated values; chance of loss, risk, expected return, etc.
Our product selector groups the sort of product you want to look at using risk and investment objective, and then ranks products using a return measure that you can choose. This can be a great way of identifying secondary market opportunities, or of seeing what is the best of the new offers available now.
Research Issuers Pay For
When banks, or other promoters are proposing a new product to you we are happy to run theseshapes through our system, and give you the report before the issue date. This will allow you to see what return you can expect, and how risky the product is. If you as an investor demand this research, the product promoter would pay. We would charge them £500 initially for the report, and £10 per week. This is a trivial amount for them, and will have no impact on the pricing.
Research You Pay For
There are 2 situations where we think that it would be reasonable for you to pay for our research
- If you wanted to use the analysis to do your own product development. We can give you admin access to our research site. This would allow you to upload and test your own products
- If you wanted to create and publish your own reports on SP’s using our analysis, we would want to be paid for providing the analysis.
CUBE is a trading name of CET Capital Ltd. CET Capital Ltd (“CET”) is registered in England (No 04986900), with its registered address at 55 Bryanston Street, London, W1H 7LZ. CET is authorised and regulated by the Financial Conduct Authority no. 446267.