For the retail investor, structured products have not only weathered the GFC storm, but also become increasingly attractive in its aftermath. Among the benefits of structured investments are their capital protection facilities (in some cases), their potential to earn higher yields than fixed deposits, and their use as a means to reduce market risk exposure.
They can also be designed to benefit from current market trends, linking them to the performance of a suite of benchmarks including interest rates, equity markets, commodities, corporate credit or foreign exchange markets.
Interest in structured products has grown as investors focus on capital preservation strategies and move away from inflexible products no longer relevant in an increasingly volatile investment environment.
