Total Index-Linked Global Return Securities: TIGRS
TIGRS are closed-end, index-linked securities introduced to Barbados by Royal Fidelity in 2008. The funds provide several important benefits to Barbadian investors, including principal protection, exposure to markets outside the Barbados, and diversification. Since 2008, Royal Fidelity has launched four TIGRS, outlined below:
The first TIGRS offering was the Royal Fidelity Total Index-Linked Global Returns Securities A with 5 year principal protected index linked shares offering investors their principal investment back plus 100% of any increase in value of the indices at the end of the investment period. The fund is invested in four broadly diversified indices to provide exposure to the United States, Europe, Japan and Emerging Market equity markets. Barbadian investors had the opportunity to invest outside the Barbados while significantly reducing investment risk. When the shares mature, investors get the original investment back and all the capital gains from the indices.
To view the Fund’s Pricing Supplement, click here.
TIGRS A1
33% Gold; 33% Copper; and 33% Nickel
The second offering was the Royal Fidelity Total Index-Linked Global Returns Securities A1 with 5-year principal protection and linked to the performance of Gold, Copper, and Nickel indices. As with the other TIGRS funds, Barbadian investors have the opportunity to invest outside Barbados while significantly reducing investment risk. When the shares mature, investors get the original investment back and all the capital gains arising from any increase in the underlying indices. In the event of a decline in the indices, investors will still get their original investment back at the end of the investment period.
To view the Fund’s Pricing Supplement, click here.
TIGRS A2
60% Emerging Markets; 20% S&P 500; 20% Europe, Australasia and Far East (EAFE)
The third TIGRS was the Royal Fidelity Total Index-Linked Global Returns Securities A2 with 5-year principal protection and linked to the performance of equity indices covering Emerging Markets, the US, and the Far East. The global ascendancy of Emerging Market economies led Royal Fidelity to allocate 60% toward these developing economies, while still achieving exposure to traditional equity indices in the US and the Far East. As with the other TIGRS funds, Barbadian investors have the opportunity to invest outside the Barbados while significantly reducing investment risk. When the shares mature, investors get the original investment back and all the capital gains arising from any increase in the underlying indices. In the event of a decline in the indices, investors will still get their original investment back at the end of the investment period.
The fourth TIGRS was the Royal Fidelity Total Index-Linked Global Returns Securities A3 with 5-year principal protection and linked to the performance of equity indices covering growth of business within the global agriculture and energy sectors. The TIGRS A3 offers investors 100% principal protection, plus 2% per annum over the 5-year term of the fund (10% minimum return), plus 65% of the performance of two indices linked to the business of global agriculture and energy.
To view the Fund’s Pricing Supplement, click here.