Altus Insights
Structured products
Structured products are investment tools that combine traditional financial instruments—like bonds or deposits—with additional features, often linked to the performance of underlying assets such as stocks, indices, or interest rates. They are customised investments that can be designed to offer protection, boost returns, or pay out under specific market conditions. Some protect your original investment (like structured deposits), while others take on more risk for the chance of higher returns (called capital-at-risk products).
For investors with a defined market outlook or specific return goals, structured products can be a smart addition to a diversified portfolio. They allow for increased precision in risk-return tradeoffs, enabling access to strategies not available through standard investments. In a low-yield environment or uncertain markets, they provide opportunities to generate returns even in flat or moderately rising scenarios. As part of a smart investment portfolio, structured products can be a valuable tool for income generation, capital efficiency, and risk-managed growth.
For investors with a defined market outlook or specific return goals, structured products can be a smart addition to a diversified portfolio. They allow for increased precision in risk-return tradeoffs, enabling access to strategies not available through standard investments. In a low-yield environment or uncertain markets, they provide opportunities to generate returns even in flat or moderately rising scenarios. As part of a smart investment portfolio, structured products can be a valuable tool for income generation, capital efficiency, and risk-managed growth.
Examples of a structured deposit plan
Arcus 6Y UK Defensive Growth Deposit Plan (RBC29)
NOW
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
AT MATURITY
Capital Investment
Capital Investment
31.1% interest
15.55% interest
If FTSE 100 is more than 80% of the FTE 100 6 years ago
If FTSE 100 is less than 80% of the FTE 100 6 years ago
About the author
PETER MCAULEY
Peter is a professional banking executive with over 35 years of experience in financial services. His career spans a wide range of roles across global financial institutions, with a strong focus on capital markets. He has spent over 20 years specializing in equity derivatives and the structuring of complex financial products, working with leading global investment banks. Peter combines deep technical expertise with strategic insight, contributing to product innovation, risk management, and client-focused solutions in the investment banking space.
