Structured Products
Reduce Risk Increase Returns
Structured Products offer an alternative that meets the needs of most investors from conservative to aggressive. These products can help take away the emotional stress that comes with market volatility and allow you to sit back and relax, whilst your wealth generates a consistent monthly income, while protecting you from market’s volatility. In the current environment, structured investments offer a solution for investors who want to hold the best quality assets in their portfolios generating strong returns while offering protection from potential market volatility, corrections or crashes.
How do Structured Products work?
A structured product tracks a basket of assets (indexes, stocks); example: Amazon, Walmart, Apple. We design products for our clients to meet their exact requirements of risk management vs return. Our current products will typically pay you a monthly cash income of 0.83% -3% per month (10%-36% per year) . The income will be paid every month as long as any stock does not fall below the stipulated barrier level. (example – 40% to – 50% from the stock price at date of issue, see examples below).
What if the stocks drop more than the barrier?
If any of the underlying holdings has breached the barrier level at any monthly observation date, then dividend payments are not paid. However all of our structured products have a memory feature, meaning that any missed dividends will be paid when all underlyings are once again in positive territory (to barrier level) on future observation dates. This memory feature means that you can stay calm in times of market volatility and make consistent returns even if your portfolio of assets is negative. Obviously all investments come with a certain amount of risk*. On the final observation date if any underlying holding is in breach of the barrier level then capital is at risk. Although anything is possible we feel it is unlikely that the world’s strongest companies will drop 50% even in a crisis. Recently in March 2020 we saw a major sell off in the stock market but the best stocks in the market did not lose more than 30% of their stock value.