Structured Products
Defined outcomes, capital protection, and enhanced yield from major international banks.
Not every investor is comfortable with the uncertainty of open-ended market exposure. Structured products offer something different: defined outcomes. You know at the outset what your maximum gain could be, what your maximum loss could be, and what conditions trigger each outcome. For African investors seeking capital protection with upside participation, structured products can be a valuable portfolio component.
What Are Structured Products?
A structured product is a pre-packaged investment that combines a derivative (typically an option) with a traditional asset (typically a bond or deposit) to create a product with a defined payoff profile. They are issued by major international banks — Morgan Stanley, Barclays, Goldman Sachs, Société Générale — and are designed to deliver specific outcomes over a fixed period.
For example, a capital-protected note might offer: “100% capital protection plus 80% participation in the upside of the S&P 500 over 3 years.” This means you cannot lose your initial investment (subject to the issuing bank’s creditworthiness), but you capture 80% of any market gains. If the S&P rises 30%, you earn 24%. If it falls 30%, you get your money back.
Types of Structured Products
Capital-Protected Notes: Your initial investment is guaranteed (subject to issuer credit risk). You participate in market upside, typically at a participation rate of 60–100%. Ideal for conservative investors who want market exposure without downside risk.
Autocallable Notes: These products pay an enhanced coupon (typically 8–15% per annum) as long as a reference index stays above a predetermined barrier level. If the index rises above a certain level on any observation date, the product “autocalls” — returning your capital plus all accrued coupons. These are popular for generating income in sideways or mildly bullish markets.
Enhanced Yield Deposits: Short-term products (typically 1–6 months) that offer an above-market interest rate in exchange for accepting some currency or market risk. Suitable for cash holdings that you want to earn more than standard deposit rates.
Our Due Diligence
We do not recommend structured products uncritically. Every product we present has been stress-tested against historical data and adverse scenarios. We assess the issuing bank’s credit rating, the product’s fee structure (which is often opaque), the liquidity terms, and the realistic probability of each outcome.
We also ensure you understand exactly what you are buying. Structured products can be complex, and we believe that if you cannot explain the product to a friend in two sentences, you should not invest in it. We present every product with a clear one-page summary showing the best case, worst case, and most likely outcome.
Next step
Every strategy begins with a conversation. We would welcome the opportunity to understand your circumstances and show you what is possible.
Key Facts
$25,000
1–5 years
Up to 100%
8–15% p.a.
Tier 1 banks
Related Services
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