Buffered Index Portfolio
A solution to minimize the risk of your investments by providing a pre-determined set of outcomes for you.
What’s A Buffered Index Portfolio?
A Buffered Index Portfolio uses structured notes to create upward participation in the market with a predetermined level of downward protection against the volatility of it. You are offered the opportunity to enjoy the growth up to a prearranged return cap bit with a set level of buffer against any market loss.
The Structure Of A Cap And Buffer
The Buffered Index Portfolio seeks an attractive return potential with a partial downside protection. To see how they work, let’s plan a hypothetical scenario for a cap and buffer structured note and the results at different levels of the index return.
The investor participates in the index price return up to a cap of 12%
The investor is protected against the first 10% of loss via the buffer
The index participation rate is 100%
If the index return is below the level of the buffer, the investor begins to experience losses
At maturity, the note is liquidated
Cap / Buffer Return Structure At Maturity
Scenario |
|
|---|---|
| Cap | 12% |
| Buffer | 10% |
| Participation | 100% |
| Outcome Period | 366 days |
Outcome Examples |
|
|---|---|
| Index Price Return | Cap/Buffer Return |
| -20% | -10% |
| -5% | 0% |
| -1% | 0% |
| 5% | 5% |
| 20% | 12% |
There are countless factors to consider before investing in the market, but this innovative investment option could offer you a risk-reward scenario better suited for your financial goals.
Take The Next Step
For more information about the current offering, click on get started. We believe no one should have to worry about the financial security during this stage of life, therefore, we are offering you a complimentary consultation.
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