A structured ‘wrapper’ around an investment portfolio can tailor the risk – return profile to better suit the needs of the Investor. Structures can provide either:
Leverage – enhancing the returns of a naturally conservative low risk portfolioIn today’s environment, fund managers can better serve their Investors, and can avoid the business risks of adverse performance, with Structured Products.
or
Guaranteed return of Capital – protecting against losses or under-performance
The following schematic illustrates the mechanics behind a European Medium Term Note guaranteeing both the return of principal to the Investor and 80% of the upside of a portfolio of alternative strategies.
| Guaranteed Note Schematic |
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