HALFWAY THROUGH | H1 2024 RECAP
In equity markets, particularly the US S&P and Nasdaq, most of the heavy lifting has been done by ‘big tech’ but the outlook for the broader market has improved.
Secure returns with Structured Investment Products
Have you ever considered investing in structured investment products (also referred to as structured notes)? If not, you may be missing out on a fantastic opportunity to boost your returns while enjoying the protection that this exciting asset class offers.
Today we’ll look at what you need to know about their secure returns, how they differ from traditional investments when looking to add diversity to your portfolio, or simply want to learn more about this type of investment, here’s your opportunity to find out what you need to know about structured investment products.
ALTERNATIVE INVESTMENTS FOR SELF-DIRECTED INVESTORS
A structured investment (or note) is a debt instrument and a unique form of alternative investments that may offer investors higher returns than traditional fixed-income products, while potentially reducing the overall risk they take. These notes are structured with built-in protection mechanisms that protect investors if the market turns against them. That said, structured note investors must still understand and accept the inherent risks associated with all investments, as no investment is entirely without risk.
INNOVATIVE PRODUCTS
Structured notes are often issued by banks and other financial institutions as a way to raise capital and grow their balance sheets.
These notes are usually issued by investment banks, allowing them to raise capital. A structured note typically pays a return based on an underlying security or basket of securities. At the same time, it gives the issuer (the investment bank) flexibility regarding the payment structure and timing. Depending on the structure of the note, it may also provide some downside protection for investors. This versatility makes structured notes an attractive investment option for many, especially those looking for greater control over their portfolio returns than what traditional high-yield bonds can offer. Each note has its own terms and conditions so an investor can build a portfolio of notes that include diversification, protection, and no surprises.
Only A-Rated investment banks are selected as issuers for Cashbox Global structured notes and we always include built-in downside protection.
DOUBLE-DIGIT GROWTH
This innovative product enables self-directed investors and advisors to diversify their portfolios, achieving double-digit growth. Structured notes offer excellent predictability of returns and built-in protection, allowing investors to enjoy steady returns on their money with no surprises.
Structured Investment Products have been around since banks were invented. Cashbox Global Track Record
HIGH RETURNS, LOWER RISK
Structured notes have had a mixed history over the past two decades. But things changed after the global financial crisis and Lehman Brothers’ bankruptcy. New regulations were introduced to protect investors which changed how products are designed.
Education is key and investors should be aware of the risks associated with investing in structured notes, particularly credit and market risk. Credit risk relates to the risk of the issuing bank defaulting, and market risk is related to the possibility of the underlying basket falling below the protection levels. A third risk is potentially high fees.
To mitigate credit risk Cashbox Global only uses A-Rated European banks as issuers. Market risk is mitigated through extensive research on the constituents in the underlying basket, and inclusion of deep capital and income protection. In most instances, even if the underlying reference basket drops by up to 50%, investors still receive their returns. Regarding fees, there are no additional fees on Cashbox Global products. The rate of return that is stipulated on the contract is the exact amount investors receive.
INVEST FOR INCOME, GROWTH OR A COMBINATION
Notes are designed with a specific outcome in mind. They can be designed for predictable income, growth, or a combination of the two called a hybrid.
By building a portfolio of notes, an investor can reduce risk even further diversifying across issuers, sectors, underlying stocks, indices, and currencies. With the available options, investors can customize their portfolios to best match their individual investment goals.
A structured note is an investment instrument that offers investors the potential for higher returns than traditional investments, with the possibility of taking on less risk. For banks and other financial institutions, structured notes can help to raise capital.
Cashbox Global provides access to institutional grade structured notes, not previously available to regular investors, that deliver superior returns with protection for savvy investors and advisors.
Because Structured notes are not mainstream, many investors don’t know about them, yet there are many good reasons to use them.
