IPS Custom Structured Notes are innovative investment strategies that allow for exposure to a particular asset class while mitigating much of the downside risk associated with that exposure. Our Structured Notes increase the probability of hitting targeted returns. We structurally manage portfolios to share in the gains of the S&P 500 or any asset class that you wish to build a structure on 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 structured notes.
Similar products created by Wall Street have very rigid terms, long duration, and high fees with virtually no liquidity. At IPS Strategic Capital we can build short-term structures with much better valuation the benefit of mark-to-market pricing, full transparency, and the liquidity of exchange-traded products at a fraction of the cost.
Customization based upon risk profile and investment goals.
Please note that the above information is simply for illustrative purposes and is purely hypothetical. This information provided is for informational purposes only and should not be construed as a solicitation to buy or sell securities or any financial instruments. The above illustration involves exchange-traded options contracts. Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options. Put options give the purchases the right, not the obligation, to sell a specified number of shares of the underlying security at a specific date in the future. The seller of a put option has the obligation, not the right, to have a number of shares delivered to them at a specified price at a specified date in the future in exchange for receiving a premium upfront for this risk. The buyer of a call option has the right, not the obligation, to purchase shares of the underlying security at a specific date in the future. The seller of a call option has the obligation, not the right, to deliver shares of the underlying at a specific date in the future. Please consult a financial adviser before making any decisions to buy or sell securities. Past performance is not indicative of future results.
Please note that this is a hypothetical example intended to illustrate one of the potential outcomes for the Structured Custom Investment program. The value of the treasury bill and S&P 500 ETF (SPY) options are based on the closing prices as of 1/28/19 but are not indicative of the future outcome of said Structured Custom Investment. While minimal, there is default risk in the U.S. Treasury bill as well as counterparty risk of facing the OCC in the exchange-traded options on the S&P 500 ETF (SPY). The value of the Structured Custom Investment can fluctuate between the inception and maturity dates. Past performance is not necessarily indicative of future performance. This example is not an offer to sell nor a solicitation to buy any investment securities and is purely a hypothetical example intended to demonstrate the concept of the Structure Custom Investment program. This is not investment advice; please call your financial advisor before making any investment decisions. Options trading involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and, as a result, clients may lose more than their original investment. If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy stock and a put option gives the holder the right to sell the stock. Please refer to the Characteristics and Risks of Standardized Options before buying or selling any options contracts.
* 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 is not 100% accurate and may cause a tracking error in the notes. Although Defined Outcome Investments 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 Defined Outcome Investments are hypothetical. The hypothetical payoff profile is assuming that the investor holds the product for the full duration. If the Defined Outcome Investment is liquidated early, results may vary. The hypothetical performance measures are obtained using the best available information at the time of designing the Defined Outcome Investments. 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 Defined Outcome Investments. 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 Defined Outcome Investments invest in a basket of highly diversified high-yield corporate bonds. The hypothetical payoff profile of the Defined Outcome Investment 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 Defined Outcome Investments may vary.