Skycastle Group

Structured Products AND MONETIZATION OF ASSETS

Skycastle Group

Skycastle Investments Structured products

your structured product specialists in south Africa

What is a structured product?

A structured product, also known as a market-linked investment, is a pre-packaged structured finance investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance, or foreign currencies, and to a lesser extent, derivatives.

Why should one invest in a structured product?

Each structure is tailored with its own set of parameters from extra kicker to capital protection Underwritten by top tier investment banks Risk: Safer net for uncertain markets Diversification: Access to different markets, currencies and thematic’s

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Product #2

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structured products & monetization of assets

protecting either stock specific or entire portfolio’s from downside risk & extracting liquidity from the structure providing you the ability further diversify your portfolio locally and globally

Introduction to collars/fences

  • High Net Worth clients are unaware of the tools at their disposal. 
  • Clients can [protect their investments through various structures i.e. Collars, while maintaining large potential upside and protecting 100% of their downside
  • alternatively protecting a portion of their downside in the underlying share or portfolio i.e. 90% or 80% collar structure
  • reasons to collar include diversification to reduce concentration risk and market risk
  • assets are pledged and not sold: therefore no cgt event is triggered

Fences

Should clients not need protection all the way to zero, they are able to protect the asset down to a certain level. therefore having the ability to participate in a lot more upside. 

bottom line

  • the above two structures can be tailored made to suit client risk profile and expectations
  • clients could also monetize their assets (create liquidity) on the back of these structures – with the respective banks.

Skycastle is a South African based group of companies specializing in Investment and Trading solutions in South African and Global financial markets, providing services that are critical to Investors and active traders across the globe.

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