Derivatives

Structured derivative solutions are unique investment instruments that, when combined with a portfolio of securities, create a single solution that meets the needs of investors based on their liabilities and/or view of the market.

These solutions would typically involve some kind of capital protection, offshore exposure and/or legally based packaging.

Investors need to maximise the returns on their investments while ensuring they meet their liabilities at the same time – which usually suggests large exposure to real assets such as equities, as this asset class is expected to give superior performance over the long term. However, equity returns can be very volatile over the short term and may cause investors to lose large sums of money when they can least afford to.

Through structured derivative solutions, investors are able to increase their potential returns by investing in equities while at the same time achieving lower volatility and the desired protection over a specified term.