Structured Investments (also known as Structured Products) can form an important part of an investment portfolio, providing investors with portfolio diversification 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 comfortable with an investment where your capital is at risk.
- 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 or capital growth.
- Offers an efficient way to take advantage of a particular market scenario.
- 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.
- 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 potential 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 potentially 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.
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 risk tolerance of our clients.
Citibank begins by reviewing a range of investment strategies from a variety of 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 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.
The investor will receive their capital back at the scheduled Maturity Date or in the instance of a Call Event and provided no Early Maturity Event has occurred, and the investment is made on or before the closing date. If there is an Early Maturity Event or Units are sold prior to scheduled Maturity, the investor may receive an amount less than their original investment amount. The return of capital is also subject to the credit worthiness of the Issuer.
Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. Before acting on this advice you should consider if it's appropriate for your particular circumstances. Before you decide to acquire a product, you should obtain the relevant Product Disclosure Statement, and consider its suitability for your objectives, financial situation, or needs.
Investments are not deposits or other obligations of, guaranteed, or insured by Citibank N.A., Citigroup Inc., or any of their affiliates or subsidiaries, or by any local government or insurance agency, and are subject to investment risk, including the possible loss of the principal amount invested.
© 2017 Citigroup Pty Limited ABN 00 004 325 080, AFSL No.238098, Australian credit licence 238098. Citibank®, Arc Design® and Citi Simplicity® are service marks of Citigroup Inc.