Structured products for solidarity
As a player committed to building a more sustainable world, Societe Generale Private Banking France places positive impact at the heart of its value proposition and development strategy.
This conviction is illustrated in particular by our ability to forge social impact partnerships with public interest players (associations, foundations). Our charitable structured products programme, launched in 2018, is one of the concrete applications of this.
How do these charity structured products work?
The financial characteristics of these products are those of classic equity structured products. The charitable component is implemented through a multi-level donation system, so that charities can take full advantage of the structured product mechanism:
A donation linked to the amount subscribed. At the launch of the product, we make a donation corresponding to 0.10% of the total amount subscribed.
A conditional donation that depends on the evolution of the equity markets. Thus, in the event of an early recall of the structured product, the associations will receive an additional donation of 0.10% per year, i.e. 0.10% in the event of a recall in the first year, 0.20% in the second year and so on up to 1% at the maturity of 10 years.
The investor's return is not affected by the payment of the donation, which is fully covered by Societe Generale Private Banking France(1).
Innovative and pioneering in 2018, this mechanism has now become widespread: almost half of the structured conviction products we offer now have this option.
Who are the beneficiaries of this action?
The beneficiaries of these donations are selected by a dedicated committee. We also make sure that the area of intervention makes sense for our clients and employees. Partnerships are established for a minimum of 3 years, extendable from 1 to 3 years.
The causes and beneficiaries currently supported by this program include
The fight against cancer with the Institut Curie;
Poor housing and the fight against exclusion with Habitat et Humanisme;
The care of mentally handicapped adults with Perce Neige;
Humanitarian aid with Care and the French Red Cross.
What is the impact of the initiative?
3 million euros in donations have been distributed over the last three years thanks to the early repayment of several structured products issued over the same period.
In concrete terms, part of these donations has, for example, enabled the Habitat et Humanisme association to furnish several newly-acquired apartments to house people in great social difficulty and enable them to build a more autonomous and dignified life.
With our support, the Perce Neige Foundation has been able to develop "sensory" spaces, which are essential to the balance and development of the mentally handicapped people it supports.
(1) It is reminded that a structured product presents a risk of capital loss during its lifetime and at maturity. It is therefore intended for clients with experience and knowledge of the markets, and whose investor profile is compatible. Given these risks, it is offered to clients for portfolio diversification purposes and should not represent a majority share of their portfolio.
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