Relevant to
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Structured Products are investment products that are usually issued by banks and listed on the JSE. Typical characteristics include capital protection, upside participation to a specific market or asset, and a fixed expiry.
These new issues are offered to the public by means of a bookbuild before they are listed on the JSE, and similar to an equity IPO interested investors need to indicate their interest by applying for the product prelisting.
These products are intended for sophisticated investors who understand the associated risks and are willing to assume these risks.
What should you know?
- Maturity – These products are intended to be held for the entire duration of the investment product’s life cycle until maturity. The maturity date of the investment indicates how long you will need to hold your investment in order to avoid losing out on the stipulated benefits or incurring penalties for an early exit from the investment.
- Trading - Buying and selling can be a little tricky so you will need to contact us in order to do so. These products do not offer sufficient liquidity (limited buyers and sellers) as there is a limited secondary market in them. As such the issuer will determine whether they can buy back units or sell units to interested buyers, so there is not always a buying or selling price available at all times.
- Pricing – Due to the nature of these products and the lack of liquidity, pricing can be negatively affected. If the price does not update regularly or there is no price available, do not panic. This usually happens because our intelligent systems are unable to pick up either a bid or an offer price or both, which is just the nature of the product until the issuer makes these prices available. We unfortunately cannot display a daily price unless there is one available in the market. The issuer usually has details about accessing updated prices through their website.
Please Note
We cannot guarantee the sale or purchase of units in these products during the duration of the investment term, this is entirely up to the issuer of the product. Penalties and fees incurred are subject to the terms of the issuer.