STRUCTURED PRODUCTS

• 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.