Allows you to take exposure to an underlying investment of your choice, in accordance to your investment objectives and your risk tolerance. Structured products are investments which allow you to achieve a customised exposure to a particular asset, that is comfortable to you.
Investing in structured products will forego the dividend yield of the asset, as well as introducing a fixed term. Different structured products will offer different degrees of exposure to the performance of an underlying asset, with diverse ways of providing upside and controlling downside exposure.
Customised risk/returnThrough structured products, you can take a customised exposure to the underlying asset of your choice. In particular structured products allow you to optimise their upside and/or downside exposure
Market AccessThrough structured products, you can get access to a wide range of assets:
Equities: indices such as FTSE 100, or individual stocks (and baskets), Commodities, including forward contracts e.g. Crude Oil, Real Estate, for example the House Price Index, FX, such as baskets of currencies vs. US dollar, Interest rates, often used for protecting against future rate rises.
HedgingIf you have concentrated exposure to a particular asset or market force, we can structure a derivative to help insure against adverse movements.
Handpicked, innovative productsWe aim to offer you innovative product designs. Our product specialists work with more than a dozen leading investment banks including the Investment Banking division of Barclays, an award-winning designer of structured products.
Wide range of counterparties to deliver you valueOur access to more than 15 counterparties enables us to deliver value for you on a consistent basis in terms of pricing competitiveness, quality of service and innovation. Just as due diligence is a vital part of our manager selection process, we take great care in selecting counterparties.
After sales supportWe believe that post-sale support is a valuable part of our service, and monitor our products accordingly. This helps us add value to your portfolio, keeping it as efficient as possible.
Typical risks associated with structured products
- Credit: if the issuer fails to meet its obligations, you may not receive what is due to you (or anything at all)
- Prices can fluctuate below the level at which you originally invested, due to market forces such as interest rates. Also, you may not be able to sell the investment as their may not be an available secondary market. If you sell the product before its maturity date you may get back less than you invested irrespective of the performance of the underlying asset
- Structured products will not necessarily outperform the underlying asset or index to which they are linked
- Some structured products are significantly leveraged. This brings high risk as market movements – including falls - are strongly amplified
- Customised exposure to the underlying asset of your choice
- Access to a wide range of assets
- Tailored products to suit your needs
- Hedging to help insure against adverse movements
- Access to a wide range of counterparties offering you value
- After sales support keeping your portfolio as efficient as possible
- If the issuer of the product fails to meet its obligations (e.g. because it is insolvent) you may not receive what is due to you (or anything at all)
- Structured products will not necessarily outperform the underlying asset to which they are linked
- Prices can fluctuate below the level at which you originally invested, due to market forces such as interest rates. If you sell the product before its maturity date you may get back less than you invested irrespective of the performance of the underlying asset
- Some structured products are significantly leveraged bringing high risk as market movements – including falls - are strongly amplified