Structured Investments (also known as Structured Products) can form an important part of an investment portfolio, providing investors with portfolio diversification, principal protection at maturity^ and the potential for enhanced returns. These innovative products provide a more flexible asset allocation and easy access to defensive investment strategies for fast changing market conditions.
You are an investor looking for a product that offers potential to gain higher returns.
You are interested in products that offer different levels of protection against capital loss relative to other investments.
You are a balanced or aggressive investor looking for investment opportunities to form part of the defensive portion of your investment portfolio.
You are looking for the potential for enhanced returns in times of neutral, moderately bullish to bearish market performance and may not necessarily have a view on the future direction of the underlying market.
Provides the potential for enhanced returns - in the form of income and/or capital growth.
Offers an efficient way to take advantage of a particular market scenario.
Suits most investor risk-profiles except risk-averse, and can help achieve a range of investment objectives.
Usually presents no currency risk - when investments are linked to the performance of international markets. In some strategies where the investment return is generated in another currency other than Australian dollars, a stronger Australian dollar may reduce the return paid during that period.
Limits downside risk through capital protection^- Investors in rising markets can benefit from the performance of the underlying asset, and in falling markets the capital protection ensures you receive your initial investment back at maturity.
Investment returns not directly correlated to market performance- Structured investments can be designed to provide enhanced returns in flat, moderately rising and in some cases falling markets. Depending on the structure, the investment has the ability to outperform traditional investments.
Structured Products are financial investment instruments designed to meet specific investor needs that are difficult to be met by traditional investment instruments. They give investors the opportunity to potentially profit from particular market conditions. It also means that investors can find gains in benign or even falling markets. Structured products can be used as an alternative to a direct investment and as part of the asset allocation process to reduce risk exposure of a portfolio.
While this may sound like a broad definition, there's a lot of work that goes behind the scenes to ensure we offer suitable structured products based on the needs and risk tolerance of our clients.
Citibank begins by reviewing a range of investment strategies from a variety of independent product issuers. We identify strategies that are consistent with our research while taking into consideration performance track records. We then tailor the structured product to take advantage of current market trends and provide investors with the opportunity to potentially earn a great return.
Enable portfolio diversification into a wide variety of underlying assets and markets with limited downside risks compared with direct equity. This can mean that investors with smaller risk appetites are able to comfortably incorporate growth assets into their portfolio.
Gives access to markets, sectors and investment strategies with payoff structures not typically available to individual investors, as they are either too expensive to access or inaccessible due to investment restrictions.