Structured Products provide an alternative asset class to complement traditional investments in your portfolio. Structured Products can offer unique risk-return profiles and are often used to address specific investment objectives, reduce risk, generate periodic income, or provide the potential to earn enhanced returns.
Structured investments include tailor-made products which accommodate investor-specific market views or provide the means to implement complex trading strategies which cannot be achieved with conventional instruments whilst they usually provide the opportunity to generate greater returns compared to traditional investments. In addition, utilising Structured Products enables investors to leverage on their risk reduction capabilities such as enhancing the diversification of an investment portfolio or investing in international markets without bearing foreign exchange risk. Last but not least, additional safety features such as full or partial protection on the invested capital can provide additional peace of mind for investors.
We design structured products based on a wide range of underlying assets classes including equities, interest rates, foreign exchange and commodities. We also work with a number of international structured product providers in order to deliver an extended selection of products from various reputable issuers (outside Bank of Cyprus' balance sheet) to our clients so as to meet their specific risk and return requirements.
Short term structured products
These are short term products most often used for yield enhancement and cash management. Short term structured products provide the potential to earn a higher return compared to traditional short term investments or cash placements. In addition, they provide the means to take advantage of tactical opportunities in the market, based on the client’s preferred risk tolerance level. Some examples include:
- Dual Currency Investments
- Reverse Convertible Notes.
Structured deposits are also offered. They are fully repayable at maturity and may additional pay a coupon /interest assuming certain predefined conditions are met.
One example of such a product is “Double No Touch Investment”.
Long term structured investments
This broad category includes products suitable for long term investing. Structured products due to their nature enable investors to implement strategies or utilise features which are often not possible with traditional long term investment vehicles, such as capital protection or participation in the absolute (positive or negative) return of an asset class. Some examples of long term structured products include:
- Index-linked Notes
- Range Accrual Notes