Custom Structured Notes

Disclaimer: Please keep in mind that all investments have the potential for profit and loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. One should always consult an investment advisor before making any investment decisions.

Structured notes are innovative investment products that allow for exposure to a particular asset class while mitigating much of the downside risk associated with that exposure. Custom Structured Notes increase the probability of hitting targeted returns. We structurally manage portfolios to share in the gains of the S&P500, gold, emerging markets, or currencies, while customizing the liquidity to the needs of each client. Structures include:

  • Market-Neutral Structures
    Market volatility is difficult for even the most experienced money managers to navigate. But what if you can turn volatility into an asset class? IPS Strategic Capital is able to provide an investment solution that generates return when the underlying asset class moves in either direction. This strategy is ideal for investors requiring a positive annual return.
  • Protective Structures
    Structural Portfolio Management allows investment managers to participate in market gains while mitigating downside risk. A protected or buffered strategy is a good fit for the investor who fears the risk of being “in the market” but recognizes the lost opportunity of being “out of the market”.
  • Leveraged Structures
    IPS Strategic Capital recognizes that some investors are more interested in potential upside than downside protection. For those younger and more aggressive investors, leveraged strategies can provide over 100% participation in market gains while still limiting downside exposure.

By using only exchange traded products, we are able to ensure the liquidity and flexibility of our structured notes. A typical Wall Street structure has very rigid terms, long duration, and high fees with virtually no liquidity. By letting IPS build and manage your structure, you can enjoy the benefits of mark-to-market pricing, full transparency, and the liquidity of exchange traded products at a fraction of the cost.

IPS Custom Structured Note of the Week

*IPS Short-Term Custom Structured Notes provide a way for your clients to get market exposure with a very low risk profile.  Defined downside protection with high upside participation.  Please contact our office at 303-697-3174 or email us for more information.

1.6 Year Buffered Note

Previous Week’s Custom Structured Notes

*IPS Custom Structured Notes use a diversified basket of defined maturity coupon bonds where the coupon is reinvested in the bond pool on a monthly basis.  This means the yield to maturity (YTM) and the discount rate are not 100% accurate and may cause tracking error in the notes.  Although the notes contain a diversified portfolio of bonds, the notes contain default risk as well as risk to changes in the discount rate.

Any statistics regarding the performance of these custom structured notes are hypothetical.  The hypothetical payoff profile is assuming that the investor holds the structured note for the full duration.  If the structure is liquidated early, results may vary.  The hypothetical performance measures are obtained using the best available information at the time of designing the custom structured note.  This is neither an offer to sell nor a solicitation to buy any securities.  The exact payoff profile of any structured product will depend on market conditions when purchasing or selling the underlying assets in the structure.  Please consult an investment advisor before making any investment decisions.

Custom Structured Notes invest in exchange listed options to gain equity market exposure.  Options can be highly volatile investments and one should consult a professional before investing in options.  Custom Structured Notes will invest in a basket of highly diversified high yield corporate bonds.  The hypothetical payoff profile of the structure is assuming that none of the debt held defaults.  While diversifying the debt has been shown historically to help mitigate default risk, past performance is not a guarantee of future results.  If one or more of the companies held in the basket of high yield corporate debt defaults, the performance of the structure may vary.