Vote for this post Share this post on:

Even in a flat or falling market

Introducing structured investments to your portfolio can help generate stable ongoing returns regardless of market conditions.  In addition they provide significant capital protection reducing the overall risk within your portfolio.

No matter what your attitude to risk might be, I am sure your appetite for loss is minimal.  Wether you are a cautious or adventurous investor downside protection can be a crucial element to your portfolio and helps protect your assets in times of increased volatility and uncertainty.

In order to demonstrate this we have included an example below that commenced when markets were at all time highs but are not significantly down in value

Car Manufacturers Income

Car manufacturers structured product

This example was structured with a 50% capital and 50% income trigger.  It is an income generating investment linked to three stocks, producing a quarterly return of 3.5% (14% per annum).

Stock Performance

One of our previous car manufacturers structured products was linked to three companies, VW, GM and Tesla.  This investment went live on the 6th May 2021 and since then these three stocks have seen a steep decline in their share price and as a result if you had invested directly into these companies you would have made a significant loss.

Above are the strike price, current value and percentage change of each stock

Protection and Returns

By structuring our income generating investment with a 50% income and 50% capital protection investors have been able to benefit from quarterly income payments totalling 28% since launch.  In addition, the investment has a 4 year notional term and will continue to produce quarterly income payments of 3.5% providing the stocks remain within 50% of their original value.

Memory Feature

Currently this feature has not had to be utilised.  However, should any of the stocks slip below 50% of their initial value, missed income payments will be recorded and paid at future qualifying observation dates therefore maximising potential returns.

Structured Investments come in many different forms with less volatile options being index linked rather than stock based underlings.  As a result these investments will have a lower annual return but might be better suited to a more cautious investor.

Additional Information

If you would like to learn more about how structured products can form a solid foundation for your portfolio and invest your capital with significant capital protection then please feel free to contact us.

Vote for this post Share this post on: