Disclaimer:  The graphic above is a hypothetical example intended to illustrate one of the potential outcomes of the Defined Outcome Investments.  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.

IPS Defined Outcome Investments (DOI) are innovative investment products that allow for exposure to a particular asset class while mitigating much of the downside risk associated with that exposure.  Our DOI’s increase the probability of hitting targeted returns.  We structurally manage portfolios to share in the gains of the S&P 500, while customizing the liquidity to the needs of each client.

By using only exchange traded products, we are able to ensure the liquidity and flexibility of our Defined Outcome Investments.  A similar product created by Wall Street has very rigid terms, long duration, and high fees with virtually no liquidity. By letting IPS build and manage this product, 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.


DOI Strategies:

  • Retirement (DOI-R)
    Structural Portfolio Management allows investment managers to participate in market gains while mitigating downside risk.  Our DOI-R 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”.
  • Enhanced (DOI-E)
    IPS Strategic Capital recognizes that some investors are more interested in potential upside than downside protection.  For those younger and more aggressive investors, our DOI-E strategy can provide over 100% participation in market gains while still limiting downside exposure.
  • Absolute (DOI-A)
    The IPS Defined Outcome Investment – Absolute enables investors to benefit from both the appreciation and depreciation of the S&P 500. In other words, the program’s Absolute option generates gains if the market goes down or up and is ideal for risk averse clients.


  • Uncapped Participation in the upside of the S&P 500
  • Defined Downside Protection
  • Increased Diversification
  • Decreased Volatility
  • Flexibility, Liquidity, & Transparency
  • Reduced Risk within a Portfolio


  • Projected returns are based upon the principal return from short-term diversified high yield bond pools.
  • If there are defaults within the diversified bond pools, this will effect the value of the DOI investment.
  • If the client exits the DOI prior to maturity, its value will reflect fair market value at that time and may vary from the target return.
  • The DOI is not principal protected and could return significantly less than the initial amount invested.



Return Expectations*

DOI – R:

  • Duration: 16 to 30 months
  • Participation Rate: +70% to +100%
  • Protected Zone: 0% to -100%
  • Loss Limit: 0%

DOI – E:

  • Duration: 16 to 30 months
  • Participation Rate: +85% to +110%
  • Protected Zone: 0% to -25%
  • Loss Limit: -10% (after a -25% market drop)

DOI – A:

  • Duration: 16 to 30 months
  • Participation Rate:
    • Upside: +40% to +60%
    • Downside: +40% to +60%
  • Protected Zone: 0% to -100%
  • Loss Limit: 0%

*The expected performance assumes that the short-term high yield bond pools deliver 100% of its expected returns between investment and maturity.


Fact Sheets

Click here for the DOI – Retirement Fact Sheet.

Click here for the DOI – Enhanced Fact Sheet.

Click here for the DOI – Absolute Fact Sheet.

*IPS Defined Outcome Investments can 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.

*IPS Defined Outcome Investments 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 DOI’s contain a diversified portfolio of bonds, they also contain default risk as well as risk to changes in the discount rate.

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

IPS Defined Outcome Investments invest in exchange listed options to gain equity market exposure.  Options can be highly volatile investments, one should consult a professional before investing in options.  The IPS DOI’s invest in a basket of highly diversified high-yield corporate bonds.  The hypothetical payoff profile of the DOI 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 DOI may vary.