Structured Products and Certificates offer potential benefits such as customized risk/return profiles, exposure to various asset classes, and potential for enhanced returns or capital protection.

The potential for enhanced returns or capital protection in Structured Products and Certificates is achieved through their unique design, which often combines multiple financial instruments. Enhanced returns may result from leveraging, participation rates, or by investing in specific market segments. Capital protection, on the other hand, can be provided through principal protection features or risk-management strategies, ensuring that a portion or the entire initial investment is protected against potential losses.

However, it’s important to note that these features may come with trade-offs, such as lower returns or limited upside potential.When investing, consider factors such as your risk tolerance, investment objectives, product complexity, fees, and the issuer’s creditworthiness.

Leverage can amplify both the potential returns and risks of a structured product. Leveraged products can offer higher potential returns if the underlying assets perform well, but they can also lead to greater losses if the assets perform poorly. Investors should carefully consider the leverage level and its impact on the product’s risk-return profile.

Structured products can be linked to a wide range of underlying assets, including stocks, indices, bonds, commodities, currencies, and interest rates. Some products may also be linked to more complex or alternative investments, such as hedge funds, real estate, or private equity.

The pricing of structured products is influenced by various factors, including the performance of the underlying assets, market volatility, interest rates, credit risk, and issuer-specific factors. Additionally, fees and other costs associated with the product can also impact its price.

Early redemptions in structured products may be allowed under certain conditions, such as investor requests or specific product features like callable options. In the case of early redemption, the investor may receive the current market value of the product, which could be higher or lower than the initial investment, depending on market conditions and the product’s structure.

A distributor is a financial institution or intermediary responsible for marketing and selling structured products to investors. Distributors can include banks, brokerage firms, and financial advisors. They play a critical role in helping investors access and understand structured products, providing product information, and facilitating transactions.

The main benefits of investing in structured products include tailored risk-return profiles, access to a wide range of underlying assets and strategies, potential for diversification, and the ability to achieve specific investment objectives, such as capital protection, yield enhancement, or market-neutral returns.

The treatment of dividends from the underlying assets in a structured product depends on the product’s structure. Some products may pass through dividend income directly to the investor, while others may reinvest the dividends or incorporate them into the product’s overall return calculation. It’s important to review the product documentation to understand the dividend treatment.

Yes, some issuers offer tailor-made structured products that can be customized to meet an investor’s specific risk-return preferences and investment objectives. Customization may include selecting specific underlying assets, adjusting the product’s payoff profile, or incorporating additional features like barriers or caps.

Market-neutral strategies aim to generate returns irrespective of market direction. Common structured product strategies for market-neutral investors include relative value strategies, option-based strategies (such as straddles or strangles), and volatility trading strategies.

The credit risk of a structured product is largely determined by the issuer’s creditworthiness. Investors can assess credit risk by reviewing the issuer’s credit ratings, financial statements, and market reputation. It’s important to note that a higher credit risk may lead to a higher potential return but also increases the likelihood of loss.

Yes, capital protection products are designed for risk-averse investors, as they aim to protect a portion or the entirety of the invested capital while still offering potential returns based on the performance of the underlying assets.

A barrier option is a type of derivative used in some structured products, where the option’s payoff is triggered or canceled if the underlying asset’s price reaches a predetermined barrier level. Barrier options can be used to create customized risk-return profiles in structured products.

When comparing structured products, consider factors like the underlying assets, product structure, payoff profile, fees, issuer creditworthiness, and regulatory protections. Comparing Key Information Documents (KIDs) and termsheets can provide valuable insights into the products’ features and risks.

The performance of structured products is influenced by factors such as the underlying assets’ performance, market volatility, interest rates, credit risk, and issuer-specific factors.

Yes, structured products can be combined with traditional investments like stocks, bonds, and mutual funds to enhance portfolio diversification and potentially achieve specific investment objectives.

An autocallable structured product is a type of callable product that can be automatically terminated by the issuer if the underlying asset(s) reach a predetermined level on a specific observation date. This may result in the investor receiving their capital and a predefined return earlier than the product’s maturity.

A market maker is a financial institution that quotes both buy and sell prices for a structured product, facilitating liquidity and secondary market trading. Market makers can help investors sell their structured products before maturity, but the prices they offer may be subject to market conditions and the product’s liquidity.

The payoff profile describes the potential returns of a structured product based on the performance of the underlying assets. The profile can help investors understand the product’s risk-reward characteristics and make informed investment decisions.

Yes, structured products can be denominated in various currencies, allowing investors to gain exposure to foreign exchange rates. However, this comes with additional currency risk, which can impact the product’s returns.

The secondary market is where investors can buy and sell structured products after their initial issuance. Trading on the secondary market can offer liquidity, but prices may be subject to market conditions and the specific product’s characteristics.

Interest rates can have a significant impact on the pricing and performance of structured products. Rising interest rates may decrease the value of fixed-income components and affect the cost of hedging strategies, while falling interest rates may have the opposite effect.

Yes, some structured products are designed to generate regular income, such as coupon-bearing products or those linked to dividend-paying assets. However, these products may have different risk profiles, so it’s essential to carefully review the product details before investing.

You can monitor the performance of your structured product by regularly reviewing the product’s market value, tracking the performance of the underlying assets, and staying updated on market developments. Some issuers and distributors also provide online platforms for monitoring product performance.

A callable structured product allows the issuer to terminate the product before its maturity under certain conditions, while a non-callable product does not have this feature. Callable products may offer higher potential returns, but they come with the risk of early termination.

The issuer is responsible for creating, pricing, and managing the structured product. The issuer’s creditworthiness is crucial, as it affects the product’s credit risk and the likelihood of receiving the promised returns.

The derivative maps produced by EUSIPA and SSPA are visual representations of the payoffs and risks associated with different types of structured products. They provide a standardized way of presenting complex product features and are intended to help investors and financial professionals better understand the products they are considering.

To choose the right structured product, consider your risk tolerance, investment objectives, and financial situation. Consult a financial advisor for personalized advice and thoroughly review product documentation, such as the KID, termsheet, and simplified product information.

Yes, there are structured products available that focus on environmental, social, and governance (ESG) factors, offering investors a way to align their investments with their sustainability preferences.

Interest rates can have a significant impact on the pricing and performance of structured products. Rising interest rates may decrease the value of fixed-income components and affect the cost of hedging strategies, while falling interest rates may have the opposite effect.

Yes, some structured products are designed to generate regular income, such as coupon-bearing products or those linked to dividend-paying assets. However, these products may have different risk profiles, so it’s essential to carefully review the product details before investing.

You can monitor the performance of your structured product by regularly reviewing the product’s market value, tracking the performance of the underlying assets, and staying updated on market developments. Some issuers and distributors also provide online platforms for monitoring product performance.

Structured products can offer diversification benefits by providing exposure to various asset classes, investment strategies, and risk-return profiles.

The risk level of structured products can vary significantly, with some products considered low-risk and others considered high-risk. Investors should carefully assess the risk profile of a product before investing.

The minimum investment amount for structured products can vary, but it is generally around 1,000 to 5,000 CHF.

You do not necessarily have to own an account with the issuer when you want to subscribe to a structured product. You can often purchase structured products through a broker or financial institution that offers access to a variety of investment products.

Yes, most structured products can be purchased through traditional brokerage accounts or online trading platforms.

Capital protection products aim to protect a portion or the entirety of the invested capital, while yield enhancement products seek to generate higher returns by taking on additional risks, such as selling options.

The role of EUSIPA (European Structured Investment Products Association) is to represent and promote the interests of the structured products industry in Europe, including market standards, regulations, and education.

Yes, structured products are regulated in Europe. They are subject to regulatory oversight by national regulators and the European Securities and Markets Authority (ESMA) to ensure investor protection and market stability.

Yes, structured products are regulated by the Swiss Financial Market Supervisory Authority (FINMA) and are subject to Swiss financial market laws and regulations.

Investors can obtain information about structured products from product issuers, distributors, financial advisors, or regulatory authorities. Key documents include the Key Information Document (KID), product termsheet, and simplified product information.

Fees can include issuance fees, distribution fees, management fees, trading fees, and currency conversion fees. These fees may be embedded in the product’s price or charged separately.

Yes, most structured products can be sold before their maturity, but liquidity and pricing may vary depending on market conditions.

The taxation of structured products in Switzerland depends on the type of product, its underlying assets, and the investor’s tax residency. Capital gains on structured products held as private assets are generally tax-free, while interest and dividend income may be subject to withholding tax.

Risks can vary depending on the specific product, but common risks include market risk, credit risk, liquidity risk, and currency risk.

Structured products can be suitable for a wide range of investors, depending on their risk tolerance, investment objectives, and financial circumstances. However, they may not be suitable for everyone, as some products can be complex and involve a higher level of risk.

Structured products are issued and available to investors in many countries in Europe, including but not limited to: Germany, Austria, France, the United Kingdom, Italy, Spain, Luxemburg, Belgium, and the Netherlands. The availability of structured products may vary from country to country, depending on local regulations and market conditions.

In Europe, the most common structured products available to retail investors are structured notes, which are debt securities with embedded derivatives, and structured deposits, which are time deposits with payoffs linked to underlying assets.

Yes, structured products are categorized in Europe based on their complexity and risk profile. The European Securities and Markets Authority (ESMA) has established a framework for the classification of structured products, which includes four categories: non-complex, complex, non-transferrable, and insurance-based.

Structured products in Switzerland are categorized into five main types: capital protection products, yield enhancement products, participation products, leverage products, and investment strategies.

Structured products are financial instruments that combine various assets, such as stocks, bonds, or derivatives, to create a product with specific risk-return characteristics. They are designed to offer tailored investment solutions based on an investor’s risk appetite and return expectations.