Structured financial products
A structured product is a complex financial product consisting of a fixed income instrument and a derivative instrument referenced to a particular underlying asset. Such a product provides exposure to the upside of a risky asset while insulating its holder from the downside risks by offering full or partial capital protection.
Structured products are specially-designed investment solutions built to address your unique risk and return preferences in ways that are not feasible with traditional financial instruments. As an example of one structured product strategy, funds will be invested in a fixed income instrument, ensuring relative capital protection, and use the residual to obtain the desired exposure to the underlying risky asset, typically through option contracts. By changing the assets used in this composition as well as their relative weights, the products’ return potential and protection level can be tailored to reflect your individual needs and views.
The risky assets to which a structured product is linked may be shares, commodity market instruments, currencies, and share indices. The chosen strategy may reflect both positive and negative views on the market or specific asset prices. Finally, you may decide what combination of capital protection and profit potential you desire to obtain.
Structured financial products in Baltic International Bank
PROFITABILITY
A combination of different financial instruments in a structured product provides the possibility to obtain a significant profit potential while limiting the downside risk of the investment
SAFETY
Depending on the composition of the structured product of your choice, instruments may offer full or partial capital protection ensured by the fixed income component of the product
FLEXIBILITY
A possibility to choose a structured product from the list of the Bank’s standard offerings or create a bespoke product tailored to your needs
Important
Prior to making a decision to conclude an agreement with Baltic International Bank regarding provision of investment services, in addition to the respective agreement presented to you by your private banker please be acquainted also with the following documents:
Description of financial instruments and inherent risks (valid from 23.07.2021.) Description of financial instruments and inherent risks (valid till 23.07.2021.) General information concerning investment services provider and investment services
List of counterparties
Rules governing brokerage services - valid till 30.06.2020.
Rules governing brokerage services - valid till 14.03.2021. Rules governing brokerage services - valid from 15.03.2021.
Client categorisation policy related to the provision of investment services and ancillary services
Prevention of conflict of interest policy (with reference to the provision of investment services)ESMA defined CFD and FOREX regulation (published 11.08.2021)
