Equity-based structured investments began as and remain the core of the current Catley Lakeman business. For the most part, the investments are built around major equity market indices and offer investors a range of outcomes from lower risk for lower return to higher risk for higher return. See below for a summary of the major investment types.
Whilst income paying versions are available, traditionally Autocalls offer a fixed capital return and a possible early redemption if certain index levels are met. The more popular version carries the "Defensive" prefix as the index criteria typically falls each years, which means they can provide a positive return in a falling market. There are several iterations of this core strategy (payoff).
Accelerators are considered alternatives to long only (active or passive) investments and are used by investors wishing to express a bullish view. They offer enhanced upside to the price return of a selected liquid, large cap index and currency exposure can be taken or hedged out. Additionally, like nearly all Structured Investments there is the potential for conditional capital protection at maturity.
These sit somewhere between Autocalls and Accelerators and involve buying enhanced upside within a set market range (via buying a call spread), thus monetising your economic view.
Whilst income paying versions are available, traditionally anything that offers a fixed capital return without the potential to autocall tends to be referred to as a Synthetic. Many investors add "zero" to the name as the payoff profile in certain respects is not dissimilar to the Zero Dividend Preference share. There are several ways the fixed return can be achieved, for example observing an index level at maturity only, or alternatively accrue the return daily depending on the index's daily closing level.
These are income paying versions of the Autocalls and the Synthetics where the returns are paid out as income rather than being rolled up.
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