July 21st, 2015
SG ETN [N
SHORT & LEVERAGE ETP
SG Silver x5 GBP Daily Long
Get 5 times the daily rise of Silver Futures
[NA
Investment Objective
Basic Data
The SG Silver x5 GBP Daily Long is a Short & Leverage ETP that enables you to
gain five times the daily rise of Silver Future prices, without ever risking more than
you invested. As a Daily Long, the SG Silver x5 GBP Daily Long will rise by 5%
before costs and fees for every 1% that the Silver Futures price has risen above the
last recorded closing price. It does this by gaining exposure to the Silver Futures x5
Leveraged Index.
Underlying Asset
Silver Futures
Leveraged Index
Legal Form
Issuer
Guarantor
Silver Futures x5 Leveraged Index
Note tracking a Warrant
SG Issuer
Societe Generale (A S&P, A2 Moody's)
Exchange
Collateralized
Collateral Custodian
Counterparty Risk
London Stock Exchange
Yes, UCITS compliant equities
Bank of New York Mellon (Luxembourg) S.A.
Mitigated through collateral. However, an intraday fall
in the value of the Collateral could mean the product
value is not 100% protected
13 May 2015
19 May 2025
1 unit
GBP
Yes GBP / USD
1.05%
0.0042%
No
Yes
The Leveraged Index
The Silver Futures x5 Leveraged Index (the Index) is created and sponsored by
Solactive AG. The objective of the Index is to provide a positive return equal to 5
times the daily rise of the Silver Futures price. The Index replicates the performance
of a hypothetical investment in Silver Futures taking into account interest rates and a
leverage factor of 5.
Further information on the Silver Futures x5 Leveraged Index can be seen on the
following website: www.solactive.com
Silver Futures x5 Leveraged Index performance
First Listing
Maturity Date
Minimum Investment
Listing Currency
Currency Risk
Annualised Cost**
Gap Premium per day
Stamp duty*
CGT Eligible*
ISA Eligible*
Yes
SIPP Eligible*
Yes
**The Annualised Cost includes the Commission and Collateral Charge.
Trading information
In accordance with the Rules of the Financial Conduct Authority, it is not possible to
show the past performance for an Index that has been available for less than 12
months since its launch.
ISIN
EPIC
SEDOL
BLOOMBERG
JE00BX7RPW12
5SIL
BX7RPW1
5SIL CORP
Compounded returns
Short & Leverage ETPs are entirely designed around the daily performance of their
Underlying Asset. By this we mean how far it has risen or fallen from market close on
one day, to market close the following day.
Index Air Bag Mechanism
You can hold them for longer than a day but your return could be more or less than 5
times that of the Underlying Asset. Each day when markets open, the performance of
the Underlying Asset and the product will be measured from their closing levels the
Trading Day before. As such, any subsequent gain or loss will build upon the
performance achieved the Trading Day before.
The Leveraged Index includes an Air Bag mechanism, which is designed to prevent
total losses during extreme market conditions. The Air Bag comes into effect if the
Silver Futures price loses more than 15% during the Trading Day. On activation, the
Air Bag triggers a 15 minute observation period whereby the lowest level of Silver
Future prices will be observed. Following the reset, the performance of the Silver
Futures price and value of the Leveraged Index will be measured from the new, lower
level. As such, subsequent gains or losses are reduced as they are based on a
smaller amount.
For example. If this product was worth £100 at the start of day one, and at market close
it was up 5%, it would close at £105, a gain of £5.00. The next day it starts again from
£105. By the end of the day it has gained another 5%. However, this time the 5% gain
is applied to £105, which gives us a return of £5.25 and a closing price of £110.25.
Although the product gained 5% on both day 1 and day 2, it was up by 10.25% over two
days. Compounding can work for you or against you. It is important to read the Short &
Leverage ETP product guide prior to investing.
Past performance is not a reliable indicator of future performance.
Source Bloomberg as of:
July 21st, 2015
Counterparty Risk Management
Short & Leverage ETPs aim to mitigate Counterparty Risk through the use of
Collateral, which is posted by Societe Generale and held with The Bank of New York
Mellon (Luxembourg) S.A.as the independent custodian. The Collateral is monitored
daily at market close to maintain 100% of the market value of the Short and
Leverage ETP. In the event that Societe Generale in their role of Guarantor should
default or become insolvent, the Short and Leverage ETP would terminate early and
the Collateral assets would be sold to recover some or all of your
investment. An intraday fall in the value of the Collateral could mean the product is not
100% protected. Eligible Collateral Assets include equities from Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland,
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland, United Kingdom and United States of America with a market
capitalisation of more than 1,000,000,000 USD.
THIS COMMUNICATION IS DIRECTED AT SOPHISTICATED RETAIL CLIENTS IN THE UK
*Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and
practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of
investments will, amongst other things, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring,
holding and/or disposing of any investments mentioned in this factsheet
www.sglistedproducts.co.uk
listedproducts@sgcib.com
Tel: 0800 328 1199
July 21st, 2015
SG ETN [N
[NA
SHORT & LEVERAGE ETP
SG Silver x5 GBP Daily Long
Get 5 times the daily rise of Silver Futures
Leveraged Index Facts
Exposure
Currency
ISIN
Air bag level
Bloomberg
Reuters
Index creation
Leveraged Index Disclaimer
The index referred to herein (the “Index”) is not sponsored, approved or sold by Société
Générale. Société Générale shall not assume any responsibility in this respect.
Solactive Indexes have been licensed by Solactive AG for use by Société Générale.
The Notes are not sponsored, endorsed, issued, sold, or promoted by Solactive AG nor
does this company make any representations regarding the advisability of investing in
the Notes.
Silver Futures
USD
DE000SLA4XW1
75% loss to Leveraged Index
SLVR5L
.SLVR5L
Solactive AG
What is a Short & Leverage ETP?
What costs are involved?
Short and Leverage ETPs enable you to take Long (rising markets), or Short (falling
markets) exposure to an index like the FTSE 100 Index, or a commodity like Silver or
oil. However, instead of moving in line with your chosen Underlying Asset, a Short
and Leverage ETP will leverage your exposure by 2, 3 or 5 times, and multiply any
gain or loss by that amount. They have a fixed investment term of 10 years and are
listed on the London Stock Exchange. A Short & Leverage ETP is a form of debt
security, which is issued by SG Issuer via an Issuing Programme which is approved
by the UK Listing Authority. SG Issuer is a 100% subsidiary of Societe Generale.
Investors holding Short & Leverage ETPs for less than a day will simply pay a dealing
commission to their broker, and a small spread on the Bid & Ask prices. Investors
holding their position overnight will incur the Annualised Cost and Gap Premium, which
are calculated daily and applied to the value of the product.
Gap Premium is a hedging cost that protects the product from extreme market
movements overnight. Without Gap Premium, the Short and Leverage ETP could lose
more than 100% of its value. However, because of the Gap Premium, the worst that
can happen is that the product is worth nothing.
Secondary market
SG Options Europe is the only market-maker, and therefore the only liquidity provider
for Short and Leverage ETPs. This means we are governed by LSE rules to buy
back and sell our products at the prevailing market price between (8.05am to
4.30pm). By investing in a Short and Leverage ETP you can be assured that Societe
Generale will buy back your product at any time during market hours in normal
market conditions. However, during abnormal market conditions, there is no
guarantee that liquidity or live prices will be available.
Instances of abnormal market conditions include:
1. The Underlying is suspended or not tradable
„
2. „
There is a period of extreme volatility in the Underlying Asset
3. „
There is a failure in the LSE or Societe Generale systems.
ADVANTAGES
Leverage. Gain 5 times the Daily Performance of the Underlying Asset.
RISKS
Capital risk. Capital is fully at risk and is not covered by the provisions of the Financial
Services Compensation Scheme (“FSCS”), or any similar scheme.
Directional. Long or Short positions available for directional investment or hedging.
Leverage risk. Losses can exceed a direct investment in the Underlying Asset.
Access. Available on a wide range of equity indices and commodities.
Underlying risk. The Underlying Asset can be volatile, which can lead to large
movements in price; either for you, or against you
Risk management. Air Bag mechanism is designed to slow the rate of loss in
extreme market conditions
Compound returns. Gains and losses are compounded over more than one Trading
Day, and as such will deviate from 5 times the performance of the Underlying Asset.
Intended eligibility. Can be traded individually, just like a share in a SIPP, ISA or
regular dealing account
Counterparty risk. If Societe Generale was to default or become insolvent, the product
will terminate. The amount you receive will depend on the value of the Collateral Assets.
Tax situation. Trading outside of a SIPP or ISA will be subject to capital gains tax
but not stamp duty.*
Liquidity risk. Societe Generale is the only party providing prices for these products.
Prices will only be available in normal market conditions.
Currency risk. If the Underlying Asset is quoted in a currency other than GBP,
exchange rate fluctuations will impact the price of the product.
This means that you may find it difficult or impossible in certain circumstances to sell
the Short and Leverage ETP or may be offered a price less than you paid.
THIS COMMUNICATION IS DIRECTED AT SOPHISTICATED RETAIL CLIENTS IN THE UK
This document is issued in the U.K. by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) authorised by the Autorité de Contrôle Prudentiel et de Résolution (the French
Prudential Control and Resolution Authority) and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our
authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request.
Although information contained herein is from sources believed to be reliable, Societe Generale makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or
dissemination of these materials is prohibited. The products described within this document are not suitable for everyone. Investors’ capital is at risk. Investors should not deal in this product unless they understand its
nature and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates.
Prior to any investment in this product, investors should make their own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us, both in this document
and the Final Terms of the product available on the website www.sglistedproducts.co.uk. We recommend that you consult your own independent professional advisers. Investors should note that holdings in this product
will not be covered by the provisions of the Financial Services Compensation Scheme, nor by any similar scheme in the country where the Issuer is domiciled.
The securities can be neither offered in nor transferred to the United States.
Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and
practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of
investments will, inter alia, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring, holding and/or
disposing of any investments mentioned in this document.
www.sglistedproducts.co.uk
listedproducts@sgcib.com
Tel: 0800 328 1199