Enjoy capital protection with a minimum of €50,000 or equivalent to invest†.
A structured note can be an ideal investment if you desire a certain amount of capital protection and want the flexibility to redeem your note prior to maturity. A structured note can be constructed in such a way that your capital is protected up to a certain percentage, or not at all. The capital is not protected, however, if the note is sold prior to maturity.
Structured notes offer a number of investment options—for example, your returns can be linked to the performance of interest rates, equity markets, foreign exchange markets or another underlying benchmark. At RBC Wealth Management, we draw on the extensive industry knowledge of our international network to offer you a variety of structured notes:
- Interest Rate-Linked Notes
- Credit-Linked Notes
- Equity-Linked Notes
- FX-Linked Notes
- Dual Currency Notes
- Hedge Fund-Linked Notes
- Commodity-Linked Notes
- Precious Metal-Linked Notes
Interest Rate-Linked Notes
Interest rate-linked notes, through the underlying structures built into the note, often pay a higher coupon than straightforward term deposits.
A credit-linked note usually offers a higher yield compared to a basic bond with a similar credit rating.
Equity-linked notes usually pay a return linked to the performance of an equity market(s) over a defined period. On the maturity date, the note pays the initial principal amount plus return, if any, based on the percentage change in the underlying equity market.
This type of note pays a return linked to a global foreign exchange (FX) market. It is usually a short-term note that pays out a fixed minimum rate of interest determined by the movement in foreign exchange rates over the life of the note. On the maturity date, the note pays the initial principal amount plus return, if any.
Dual Currency Notes
These types of notes provide an interest rate on a short-term note in one currency (base currency) in return for accepting possible repayments of the note principal in another currency (alternate currency). This product may be suitable if you desire yield enhancement and exposure to either of the two currencies.
Hedge Fund-Linked Notes
With hedge fund-linked notes, you are paid a return linked to the performance of a portfolio of hedge funds. On the maturity date, the note pays the initial principal amount plus return, if any, based on the percentage change in the underlying hedge fund.
A commodity-linked note pays a return linked to the performance of a commodity (e.g. natural gas or aluminum) or basket of commodities over a defined period. On the maturity date, the note pays the initial principal amount plus return, if any, based on the percentage change in the underlying commodity (or basket).
Precious Metal-Linked Notes
With these notes, you receive a return linked to the performance of a precious metal (e.g. price of gold or silver) over a defined period. On the maturity date, the note pays the initial principal amount plus return, if any, based on the percentage change in price (for example) in the underlying precious metal at maturity or an average over time.
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† Structured notes require a minimum investment of €50,000 or equivalent. This amount may be higher in certain jurisdictions.
Products and Services referenced in this page are provided by various RBC Financial Group companies based in different jurisdictions. Potential clients should note that the regulatory regime, including any compensation or investor protection arrangements, may well be different from their home jurisdiction. You should carefully read any regulatory disclosures contained in any literature forwarded to you by RBC Wealth Management's international offices. Depending on your citizenship and residency, these products may not be available to you or may only be available from certain RBC Financial Group companies. For example, some Guaranteed Structured Deposit Accounts are only provided by RBC Financial Group subsidiary companies which only do business in Guernsey and Jersey, and are not available to citizens and residents of the USA.
The value of investments may fall as well as rise and investors may not get back the amount originally invested. Potential investors should seek appropriate advice before making any investment decision.
The term 'structured products' refers to a group of financial instruments with varying terms, payout and risk profiles on a range of underlying assets. Structured products fall into broad categories, are non-standardised and bespoke, and usually invest in a variety of underlying assets such as shares, debt securities, commodities or mutual funds.
Frequently the investments are achieved by embedding derivative products on indices. They can also utilise gearing and leverage, which increases the risk of the investment. The percentage price movements will be greater than those of the underlying asset. Whilst many structured products have a level of capital protection, not all do so. Your capital may fall below the amount you put in. This loss may significantly increase if the product structure involves gearing or leverage. The rate of return may depend on specific conditions being met. If you take your money out early, you may get less than you put in. Where a structured product note has a level of capital protection, this is normally only effective at the maturity of the note.