Marketing and Distribution of structured products

Marketing of structured products refers to the strategies and tactics used by issuers to promote and sell these financial instruments to investors.

Structured products are customized investment products that are designed to meet specific investment goals or objectives, and are typically tailored to fit the needs of a particular investor.

In this article, we will explore the marketing of structured products in greater detail, including some of the common tactics used by issuers, the role of financial intermediaries, and some of the key considerations for investors when evaluating marketing materials for structured products.

One common tactic used in the marketing of structured products is the use of marketing materials, such as brochures, fact sheets, and presentations.

These materials are designed to provide investors with information about the product, including the underlying assets, the investment strategy, and the potential risks and rewards. Marketing materials may also include information about the issuer, such as their financial strength and stability, as well as their track record of issuing structured products.

Another tactic used in the marketing of structured products is the use of salespeople or financial intermediaries.

Salespeople may be employed by the issuer or may be independent brokers or financial advisors who are paid a commission for selling the product. Financial intermediaries may also be used to distribute the product to a wider group of investors.

In addition to traditional marketing tactics, some issuers may also use online marketing strategies to promote structured products. This can include the use of social media, email marketing, or targeted online advertising.

For investors, it is important to carefully evaluate marketing materials for structured products before making an investment. It is essential to thoroughly understand the terms of the product, including the underlying assets, the investment strategy, and the potential risks and rewards. Investors should also be aware of any fees or charges associated with the product, as well as any potential tax implications.

It is also important for investors to research the issuer and understand their financial strength and stability, as well as their track record of issuing structured products. This can help investors to assess the risk of issuer default, which occurs if the issuer is unable to fulfill their obligations under the product.

Overall, the marketing of structured products can be a useful way for issuers to promote these financial instruments and attract investors.