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Structured products

DÉFINITION ET CARACTÉRISTIQUES

Structured products generally combine derivatives such as options with more traditional assets such as stocks or bonds, either to reduce or eliminate the risk associated with certain financial instruments or to improve investment returns.

A structured product often consists of a ‘low-risk and return’ component, e.g. a bond product, and a ‘higher-risk and return’ component (a derivative, a share, an index, currencies or commodities) to improve performance.

The price of a structured product is defined by the value of its underlying assets.

ADVANTAGES

  • Structured products can be tailored to the needs of individual investors (e.g. income structure, product mix, etc.).
  • Structured products can provide access to generally less accessible asset classes (e. g. gold or oil).
  • Portfolio diversification is facilitated without the investor having to buy all components of the reference index.
  • A structured product can achieve a positive performance even if markets do not move or are on a downward trend.

DISADVANTAGES

  • The disadvantages associated with structured products are product-specific and are generally detailed in the Key Information Document (KID) of the product in question. You should therefore consult this document before investing in the structured product or seek relevant advice from an advisor
  • The complexity of structured products makes it more difficult to understand them
     

 

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Our Private Banking advisors, either at the Bank's headquarters or at its branches, are available to provide guidance on the most appropriate solutions for your objectives and requirements.

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