Structured products are financial instruments that combine elements of various assets, such as stocks, bonds, commodities or derivatives, with the aim of achieving specific investment objectives. These products are usually designed to offer investors unique opportunities for income, capital protection or market growth participation with minimal risks.

Main characteristics of structured products:

1. Diversification:

Structured products often include a basket of various assets, which allows for risk diversification and income from different sources.

2. Capital protection:

Some structured products offer capital protection, meaning that in case of adverse market conditions the investor will get back part or all of the originally invested amount.

3. Coupon payments:

Many structured products offer regular coupon payments, which can be conditional or guaranteed. Conditional coupons are paid out when certain conditions are met, while guaranteed coupons are paid out regardless of market conditions.

4. Participation in growth:

Structured products can provide the opportunity to participate in the growth of the underlying assets. This means that investors can earn income depending on the price dynamics of these assets.

5. Income cap:

Some structured products have a limit on maximum profitability. For example, if the underlying asset increases more than a certain percentage, the investor may receive a fixed income.

How do structured products work?

The operation mechanism of structured products can vary depending on their type and conditions. However, the general principles include:

1. Selection of underlying assets:

The composition of a structured product includes various underlying assets, such as stocks, bonds, commodities or derivatives.

2. Determination of conditions:

Conditions for income payout or capital protection are established. These could be barrier levels, maturity terms, observation dates, and other parameters.

3. Evaluation of conditions:

On the observation dates, the product's conditions are evaluated. Depending on the fulfillment of conditions, the investor is paid a coupon, the capital is returned, or the product is redeemed early.

4. Income payment:

If the product's conditions are met, the investor receives income in the form of coupons or participation in the growth of the underlying assets.

Examples of structured products:

1. Coupon structured product with a conditional coupon:

Description: The product offers regular coupon payments if the conditions are met on the observation date and has a memory effect for unpaid coupons.

Advantages: High conditional coupons, memory effect.

2. Structured product with a guaranteed coupon:

Description: Guaranteed coupon payments regardless of the conditions on the observation date.

Advantages: Guaranteed payments, potential for early repayment.

3. Coupon-structured product with a conditional coupon and Geared-put:

Description: Product with conditional coupon payments, including the Geared-put feature for increasing payouts in adverse market conditions.

Advantages: Conditional coupons with memory effect, Geared-put feature.

4. Structured product with growth participation:

Description: Product with capital protection and participation in the growth of the value of underlying assets, restricting returns to a certain level.

Advantages: Capital protection, participation in the growth of underlying assets, return restriction.

5. Structured product with decline participation:

Description: A product with capital protection and participation in the decrease in the value of underlying assets, with the possibility of earning income when prices fall.

Advantages: Capital protection, participation in the fall of underlying assets, the potential to generate income in adverse market conditions.

6. Structured product with growth participation with Shark growth limit:

Description: A product with capital protection and participation in the increase in the value of underlying assets within a certain price corridor.

Advantages: Capital protection, participation in the growth of underlying assets, yield limitation within a given corridor.

Is it possible to exit the product before the end of the term?

Yes, the financial loss will be up to 10% of the current price, the consideration period is up to 15 working days. The issuing company of the product reserves the right to change the terms, deadlines, and possibility of early repayment.

Detailed terms of early termination:

In case of early termination, you may lose up to 10% of the current product price. This is due to the fact that the displayed product quotes are only an indicative assessment of a derivative instrument, the calculations for which are determined by a future date.
Transaction costs of the issuer related to the service of the product and early termination are considered.
The processing times of the order are up to 15 working days.
After submitting a request for early termination and confirming it, it will be impossible to cancel or change your decision. It is recommended to carefully assess all risks before making such a request.

Conclusion: Structured products offer a wide range of opportunities for investors, combining profitability and capital protection with flexible conditions. They are suitable for those who are looking for a balance between risk and return, and want to take advantage of different financial instruments.

Print out, sign and upload the scanned copy of the signed document to the website

Please carefully check all your details