Information about Structured Products


Structured products are designed to provide potential returns while protecting principal against downside risk. This type of investment typically has two components — a principal component and a performance component. Potential returns depend on the performance of the asset(s) that are linked to the structured product.
 

  • Enhance Income – Many structured CDs and notes are created to pay dividends and/or interest at rates that exceed standard fixed income investments such as corporate bonds and bank CD’s
  • Diversification - Structured CDs and notes may provide diversification to a portfolio by offering investors exposure to asset classes that can be difficult to access directly, such as commodities, currencies and emerging markets.
  • Reduced downside risk - Structured products decrease downside portfolio volatility while maintaining market exposure.
  • Principal protection - At the end of the fixed maturity term, your principal will have been protected if you select a 100% principal protected note or CD (see important disclosures below), and your investment has the possibility of gaining returns depending on the underlying assets in the structured product.

To learn more about how structured products may fit into your portfolio register for one of our upcoming online webinars.

Lifestyle Portfolio’s through it's broker/dealer currently offers many types of structured products including 100% principal-protected structured notes, FDIC-insured structured Certificates of Deposit (CDs) AND principal at-risk (Callable Yield Notes). Structured notes and CDs are issued with term lengths. Principal protection applies if investments are held until maturity.
 

100% Principal-protected notes
Lifestyle Portfolios offers principal-protected structured notes that are issued by third-party banks. All notes sold through Lifestyle Portfolios are registered with the SEC and offer principal protection subject to the creditworthiness of the issuer. 100% Principal Protected notes are typically tied to one or more underlying assets which can be an stock market index, a basket of common stocks, or a basket of currencies. Interest and participation rates depend on the issue, which change monthly. For a list of current offerings please contact our offices at 866.825.5253
 

FDIC-insured structured CDs
Structured CDs are issued by U.S. banks and the principal protection is backed by FDIC insurance up to applicable limits. CDs also include a death put; therefore an estate does not have to hold the investment until maturity to receive principal protection. FDIC-insured structured CDs are typically tied to one or more underlying assets which can be a stock market index, a basket of common stocks, or a basket of currencies. Interest and participation rates depend on the issue, which change monthly. For a list of current offerings please contact our offices at 866.825.5253
 

Principal-at-risk structured products
Principal-at-risk structured products (excluding reverse convertible notes) offer partial or no protection and leveraged, or enhanced, performance potential. These structures generally have maturity ranges from 6 months to five years. Principal protection is available on fully protected notes and structured CDs if the issue is held until maturity and is subject to the creditworthiness of the issuer. One example is a Callable Yield Note.


Callable Yield Notes are designed to provide some downside protection along with enhanced coupons. Term lengths are generally between 6 and 12 months. The underlying asset is usually one or more market index’s stock, and if the price of the stock falls below a pre-determined “knock-in” level, the investor principal is at risk on a 1:1 basis with the lowest performing underlying asset. Coupons and return of principal are subject to the creditworthiness of the issuer. Interest and knock-in levels are specific to each issue, which change monthly. For a list of current offerings please contact our offices at 866.825.5253


Reverse Convertible Notes are designed to provide some downside protection along with enhanced coupons. Term lengths are generally between 3 and 12 months. The underlying asset is usually a single stock, and if the price of the stock falls below a pre-determined threshold, the investor may receive the physical stock at maturity rather than cash. The coupons to investors are typically significantly higher than coupons generated from direct ownership when the stock is trading relatively flat. Investors who think that the underlying stock will trade relatively flat and not fall below the pre-determined threshold may consider a reverse convertible and enhanced coupon. Coupons and return of principal are subject to the creditworthiness of the issuer.
 

If you would like to learn more about structured products please register for one of our upcoming online webinars or if you prefer, contact us today to schedule a presonal one on one information session. 

Links to Articles and other Resources on Structured Notes

Important information about Structured Products

Structured products generally do not trade and are not liquid. Investors should be able and willing to hold their structured product investment until maturity.
Principal protection is subject to the creditworthiness of the Issuer. Structured product holders may lose up to 100% of their investment upon the bankruptcy of the Issuer, even if the value of the referenced asset is favorable.
Investors in structured products should bring the applicable term sheet and prospectus to their tax advisor for consultation.
CDs are generally FDIC insured up to the applicable limits. However, it is not certain that in the case of Structured CDs that the return component of the value of the Structured CDs will be covered by FDIC insurance.
Structured products are distributed by Girard Securities, Inc, but are issued by third party sponsors.
Diversification helps you spread risk throughout your portfolio, so investments that do poorly may be balanced by others that do relatively better. Diversification is not a guarantee of overall portfolio profit or protection against loss.
Brokerage, investment and financial advisory services are made available through Girard Securities, Inc. Member FINRA and SIPC. Some products and services described may not be available in all jurisdictions or to all clients.
Structured products may or may not be federally or FDIC-insured, deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.