Inside content area, use arrow keys or tab to access content

Understanding structured products

Structured products, often referred to as market-linked investments have emerged from the need to generate returns for investors which are just not possible from more conventional investments.

Structured products are typically ‘packaged’ investments with a limited lifespan and can be used in isolation to meet a specific investment goal or as part of a sensible diversification strategy. Most investments of this nature offer a predetermined minimum return but offer no guarantees.

Before you choose an investment, you should be aware of the possible rewards and be comfortable with the level of risk involved.


Whilst there is no single uniform definition of a structured product, most are based upon two essential components. This first is a low-risk element, often known as a ‘principal guarantee’ which offers the assurance of a predetermined return if the investment is held to maturity. The term ‘guarantee’ in this sense is misleading since even the low-risk element could be in doubt if the issuer hit financial difficulty. The second element is a high-risk component, usually a sophisticated financial instrument such as an option, which will determine the size of the eventual return.


Structured products aim to provide investors with the potential for a positive return coupled with limiting the possibility of loss. However this is not guaranteed nor is there any guarantee of generating a positive return or beating inflation. Structured products often involve limited visibility for investors, in other words it is difficult to track the value of your investment, with the actual return sometimes unclear until eventual maturity. Additionally these investments lack liquidity and as such encashing them early will lead to penalty or loss of interest.

Important information

The value of investments and the income from them may fall as well as rise and cannot be guaranteed. Investors may not receive back the full amount originally invested. Past performance is not an indication of future performance.

For access to advice from a Private Banking and Advice Manager, you’ll need at least £250,000 in savings, investments and/or personal pensions and/or a sole annual income of at least £250,000.
Find out more about eligibility and fees


Book an appointment

Get in touch with one of our Private Banking and Advice Managers.

No charges for the initial meeting to discuss your individual circumstances and objectives.

No obligation to take any of our services or products.

Before any services or products are provided to you we will explain what advice we can give and what products and services this covers, and any advice or product charges that apply and agree these with you.


Speak to us

You can call us to arrange an appointment or ask a question.

Lines are open Monday to Friday from 09:00 to 17:00 (Tuesday and Thursday until 19:00) and Saturday from 09:00 to 13:00. Excluding Bank Holidays. Call cost may vary depending on your service provider.