Structured Products

Structured Products are synthetic investment instruments created to meet specific investor needs that cannot be met from the standardized financial instruments available in the financial markets. Structured products can be used: as an alternative to a direct investment; as part of the asset allocation process to reduce risk exposure of a portfolio; or to utilize current market trends. Interest in structured products has been growing in recent years and investors now use these instruments as a way to diversify investment portfolios. The market for derivative securities has grown quickly as well. The main reason for this lies in the economic function of derivatives; it enables the transfer of risk, for a fee, from those who do not want to bear it to those who are willing to bear risk.

The Benefits of Structured Products Can Include:

Principal protection
Tax-efficient access to fully taxable investments
Enhanced returns within an investment
Reduced volatility (or risk) within an investment

Structured Products Can Be Classified Under The Following Categories:

Interest rate-linked notes
Equity-linked notes
FX and Commodity-linked notes
Hybrid-linked notes

Purshe Kaplan Sterling recognizes the benefits that these Structured Instruments can bring to the appropriate investor universe and has formed strategic relationships with some of the largest financial institutions in the world to deliver tailored solutions to our Investment Executives, for the benefit of their clients.