Structured product

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Structured product

Structured products are investment vehicles based on a basket of underlying securities, such as derivatives, equities, debt issuance, commodities, indices, currencies, or any combination thereof. See: Debt instrument, Asset allocation decision, Structured finance

Structured Product

Any investment vehicle where the return is linked to the performance of an underlying index. For example, an exchange traded fund is a structured product that a company puts together using all the stocks that trade on a particular exchange. It compiles all the stocks and issues its own shares representing those stocks. These shares can be traded as if they were stocks. Many structured products are known by acronyms; for example, SPDRs are common structured product shares. See also: Rule 434.

Structured product.

Financial institutions create investment products, known generically as structured products, that trade on a stock exchange and link the return on an investor's principal to the performance of an underlying security, such as a stock or basket of stocks, or to a derivative, such as a stock index.

For example, the return on debt securities known as structured notes is determined by the performance of a stock index such as the Standard & Poor's 500 (S&P 500) rather than the market interest rate. The objective is to provide the potential for higher returns than are available through a conventional investment.

Each product has a distinctive name, often expressed as an acronym, and its terms and conditions vary somewhat from those offered by its competitors.

For example, in some cases the principal is protected and in others it isn't. But some features are characteristic of these complex investments -- their value always involves an underlying financial instrument and they require investors to commit a minimum investment amount for a specific term, such as three years.

References in periodicals archive ?
The company has clear organizational structure, strong risk management framework, seasoned management team, structured investment process and quality support systems.
In December 2018, CIHL had purchased an economic interest through a structured investment in equity shares of Anglo-American Plc from Volcan Investments for a total consideration of Rs 3,812 crore.
"This investment continues FCP's strategic initiative to expand its structured investment business by providing preferred equity on existing multifamily assets."
Lowes UK Defined Strategy Fund is Lowes flagship Fund and draws upon the experience and the structured investment selection success enjoyed by Lowes clients over several decades.
Examples include: Growth structured investment - 80 per cent returns after five years if the FTSE 100 is higher on the maturity date than at the starting date.
Our structured investment capital has helped our portfolio companies grow to the next level, while giving our investors attractive risk-adjusted returns with a high current income.
The ability for investors to use DIFC-based entities to hold real estate assets in Dubai will likely encourage structured investment in the real estate sector by offering a broader range of structuring options for future projects, as well as increase demand within the DIFC.
FFA Private Bank, a Lebanese investment firm, has announced that it is ready to launch a structured investment vehicle that will channel the country's investments in infrastructure projects and the power sector.
The first ever $1bn structured investment vehicle to channel investments in Lebanon's energy and infrastructure projects is expected to be unveiled by FFA Private Bank.
Summary: The first ever $1 billion structured investment vehicle to channel investments in Lebanon's energy and infrastructure projects is expected to be unveiled by FFA Private Bank.
Mike Hodgson, Head of Risk Managed Investments & Structuring, will be responsible for managing the portfolio including the call option overlay strategy and will be supported by a team of four dedicated structured investment managers.
These include commercial and corporate banking, wealth management, structured investment products and project financing facilities".

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