Services and Solutions

STRUCTURED PRODUCTS

For each market the right solution

There are various different ways to realize your investment goals. Structured investment products can play an important role. They can be tailored to meet your individual requirements, and help you to balance your needs in terms of returns and security.

Your benefits with structured products

  • Variety: you choose what suits you – extra protection, additional returns, or optimized asset allocation
  • More opportunities: in addition to traditional asset classes, you can access a wide range of markets, topics, and investment categories

Structured products offer investors the potential to earn returns tied to the performance of an index or basket of securities. Rates of return vary and are generally paid at maturity, along with the face amount of the investment, subject to the credit risk of the issuer.

A Structured Product is an investment that is designed to offer a pre-defined return for pre-defined risk. They are different from direct investments in a market, changing the risk and/or the return that a direct investment may provide. Structured Products achieve this by incorporating derivatives, named so because their performance is derived from the performance of the chosen underlying market, rather than investing directly into the market itself.

A Structured Investment Product is a contract made between an investor and a bank whereby the investor loans the bank money for the lifetime of the product and receives a conditional or fixed return from the bank. The potential return is based on the performance of an ‘Underlying’, typically the price of individual shares or an Index.

It is now widely acknowledged that Structured Products can form part of a well-balanced portfolio. With a clearly defined potential return and, if required, significant downside protection, they can offer cost-effective exposure to a wide variety of asset classes.