German Gref learns about new investment products

In December 2016, Sberbank offered the market a new investment instrument —  exchange-traded structured bonds.

Sber posted the first issue in its history structured bonds for private investors. Before Sber, similar bonds were issued by BCS.

An exchange-traded structured bond is a security that: a) is traded on an exchange; b) guarantees the return of the invested amount and the possibility of receiving additional income, which depends on the dynamics of the underlying asset.

The underlying asset in this case is the dollar to ruble exchange rate USDRUB.

In general, this is a floating bond, unknown in advance, coupon income. Or a structured product with capital protection, issued under Russian law in the form of a security.

Sberbank's structured bonds are traded on the Moscow Exchange.

Investors (in theory) have the opportunity to buy and sell such bonds at any time. In addition, exchange-traded bonds are available for purchase in Individual Investment Accounts.

We study the terms of the product

The minimum investment amount is 1000 rubles.

The final yield is calculated using the USDRUB quote as of June 13 (4 business days before the maturity date).

Where is the profit?

The investor's profit arises if on June 13 the dollar exchange rate is ranging from 61.7 to 68.42. Moreover, the closer to the last value, the greater the potential coupon.

The most optimistic outcome — if the dollar rate rises and is close to 68.42 — then you can earn up to 21.84% per annum.

If on June 13 the dollar exchange rate is less than 61.7 rub./$, then investors will receive a coupon of 0.005% (that is, effectively zero). In other words, they will receive their invested funds back without any increase.

Similarly, if on June 13 the dollar exchange rate is above RUB 68.42/$(according to the formula 61.7 * 1.1089 = 68.42), investors will also not receive additional income, but will receive a return on the invested amount of 100.005%.

Approximate bond yield chart:

An example of calculating bond yield from a Sberbank presentation

Note:

• The dollar exchange rate values ​​on the X scale are conditional for example. Look at the graph itself.
• Profitability is indicated in % per annum (to calculate income in absolute terms for 6 months, divide the yield along the Y axis by 2).

This is the “shark fin” that Sberbank offered to investors.

More details:

- terms and conditions of the security in simple language on the Sberbank website.

- a boring document with very detailed conditions.

Who bought it?

It is reported that the bank placed (sold to investors on the primary market) bonds worth 456 million rubles. They wanted to sell it for 1 billion, but there was no such demand.

At the same time, 550 Sber clients took part in the placement (not a small number for the first attempt). Thus, the average purchase amount was 830,000 rubles/customer.

Expert opinion

Jan Dohodny, Portfolio Manager

Russian Bond - senseless and merciless

This instrument could be of interest to investors who expect a moderate devaluation of the ruble to levels of 66–68 rubles/$ by the summer and want to make some money on this. Popular idea. However, the devil is in the details.

We invest rubles in these bonds. And we calculate the potential profitability in rubles too.

The reality is that using this instrument to earn an income that exceeds the semi-annual bank interest in the same Sberbank or the yield on OFZ is unlikely.

If you look at the historical distribution of the USDRUB price, you can calculate that probability earn a rate on these bonds that is at least higher than 8% per annum — about 15%. That is, according to statistics, you will be lucky in one case out of 7.

The liquidity of the instrument also raises questions. There is virtually no secondary market on the exchange, which means you will have to hold the instrument until maturity. It’s a shame, if the USDRUB rate rises, for example, to 68 in the spring, then most likely there will be no opportunity to lock in the achieved profit. You can, of course, try to hedge somehow, but, firstly, hedging will kill most of the income, and secondly, this is not why you buy an exchange-traded bond, entrusting money to professionals to monitor the market daily and do such things. It would be great if Sberbank paid attention to maintaining liquidity in the secondary market.

Summary: the game is not worth the candle, the product is beneficial only for the issuer.

Personally, I would try to assemble such a product myself from exchange options for the dollar-ruble and OFZ. Or simply preferred to buy 2-3 year OFZs. Due to the increase in the exchange rate value of OFZs, investors can easily earn more than 10% per annum on them in 6 months. Not 21%, of course, but more realistic.

Grade: 3 out of 10.

Diogenes Strategsky, algoscientist

#FABALBALI

Any structured product, be it a bond note, life insurance or any other, can have only 2 origins: the provision of a service or intellectual property.

With intellectual property, everything is simple - it can be an author’s trading strategy on the market, an options strategy, or a statistical one. Anything that can be considered a product developed by an investment company that brings income to the client (in fact, it does not) and the company (but this is true). In any case, the client understands what he gets his % for investment company, especially if the commission is tied to the results of the product sold.

The service nature is always complex. We are ready to overpay for the convenience of providing a certain service in the financial market. Suppose we are not ready to study ourselves financial markets, trading terminal, terminology, etc., but we want to get the benefits (goodies) from trading on the stock exchange. We pay a certain percentage, which goes towards infrastructure + legal security. Everything is clear here. What about dark structured products, which contain participation coefficients, expirations, settlement prices and other evil spirits that we do not understand? And, most importantly, how much are we willing to pay for this super service?

A structured note from Sberbank is not an unusual occurrence. This is a kind of bond for 6 months that promises income when the dollar rises to a certain value and complete capital protection. This means that the client, in any case, will receive 100% of the invested funds (however, no one has canceled inflation), and if the dollar exchange rate increases by 6-7 rubles, then the annual return can approach 20%! The buyer is already rubbing his hands and waiting to go to #FabulousBali!

What's inside, or the asymmetry of profitability Client-Sberbank?

Sberbank is famous for its level of service, and this is, of course, a service investment product, and a very simple one at that. Inside, most likely, 95–97% of funds are placed in fixed income instruments: repos, swaps, loans, and finally, the rest goes to options transactions. Moreover, the maturity date of the bond almost coincides with the date of execution of option contracts on the Moscow Exchange. Coincidence? So I don’t think so.

I can’t say exactly which options were bought and sold by Sberbank, I can assume that this is a modified bull call spread option strategy, when call options with one strike are bought and sold with another.

Since the client is not a mammoth and will not become extinct, Sberbank boldly includes its own commission in the product, which will range from 4 to 24% per annum of the client’s deposited capital, depending on the dollar exchange rate on the bond maturity date.

We suggest studying the features of this type of investment, such as structural products. This type of investment has a second name – structured financial products. They appeared in America in the mid-20th century. A large number of brokers today use structured products. Let's take a closer look at them.

Structured products involve dividing the investment portfolio into two basic parts: risky and risk-free. In this case, the portfolio is built in such a way that even in the case of the worst case scenario, the risk-free part of the portfolio compensates for the losses incurred by the risky part. Next we will consider the following points:

What are structured products?

How is the profitability of a structured product calculated?

Classification of structured products by risk level

Banking structured products

Advantages and disadvantages of structured products

What are structured financial products?

On in simple language the concept of a structured product can be explained as follows: this is an ordinary investment portfolio consisting of two parts, one of which (protective) is always greater than the other (risky). The investment strategy determines the level of diversification in your particular case. Currently, there are many programs that allow you to restore capital even with large losses.

However, no software solution will save you from currency fluctuations and inflation. For example, a structured product can be called an asset that consists of 10% shares, options, indices, and 90% of deposits or bonds with a fixed income of 10% per annum. As you and I understand, a huge number of such combinations can be formed.

Structured products, like bank deposits, have their own service life, therefore, this type of investment can be safely classified as a “couch investment”. Profit on such products is paid at the end of the investment period. If the client decides to early termination investment contract, he may lose not only profit, but also part of the deposit. In the normal course of events, structured products can generate profits of more than 40% per annum.

How is the profitability of a structured product calculated?

When investing in structured products, it is important to take into account two main components: the degree of capital protection and the profit sharing ratio (PR). These two parameters are interrelated, that is, as the participation rate increases, so do the risks. The participation rate determines how much profit the client will receive at the end of the investment period. If the underlying asset grows, the client receives income, otherwise he returns his initial capital.

With full protection of the risky part of the deposit, the participation rate is usually low. Of course, there are strategies with higher CGs, but, as we know, high returns are based on increased risks.

Let's look at the process of making a profit using an example. Let's assume that a client purchases a structured product with an option contract for an investment period of 1 year. The participation rate is set at 40%, and the client is given a 100% guarantee of money back after the investment period. A year has passed. The option increased in price by 60%. According to the agreement, the client receives his initial deposit and 24% of the profit. Why only 24%? To answer this question, we present the formula by which the client’s profit is calculated: 40% profitability from 60% profit on the option => we get the same 24%. The terms of the contract must be studied as carefully as possible in order to avoid unpleasant situations with hidden commissions from joint venture sellers or profitability corridors.

One more example. The contract specifies a profitability corridor in the range of 60-100%. If the option price increases by 59%, the client will not make a profit. Income is obtained only when the growth of the underlying asset is within the established range.

KU can be set at 150%. The income in this situation will be significantly higher, but the risks are also extremely high. Today, another type of structured product is presented on the market: the client is offered to create two portfolios and hold them for, for example, 3 years - at the end of this period the client receives a profit from the portfolio that turned out to be the most profitable.

Classification of structured products by risk level

According to the criterion of possible risk, structured products are divided into:

JV with 100% capital protection.

JV with partial capital protection.

JV with conditional protection or its complete absence.

JVs provide the opportunity to obtain higher profits compared to bank deposits. However, the risks in a joint venture are also higher. It must be understood that the risk arises as a result large quantity external factors, which are different for each individual type of structural product. Here are the main risk factors when investing in a joint venture:

Declaration of default by the issuer of the risk-free part of the investment portfolio. In this case, you can lose all your money

High market volatility

Expiration of the structured product - if the underlying asset grows, there is no opportunity to take profit

Lost profit. If underlying asset will fall in price, at the end of the joint venture the investor receives only the initial funds, which makes the investment unprofitable

Decrease in asset liquidity.

If we talk about non-trading risks, then in any case they should be minimal. This is possible, including when registering structured products under an agreement on brokerage and banking services.

Sberbank structured products

For the most part, Sberbank's proposals regarding structured products are not interesting for ordinary investors and are aimed primarily at the corporate sector. However, for individuals, structured financial solutions are available within trust management Mutual funds. The main disadvantage of this method of investing is the high barrier to entry.

The traditional strategy for structured products is “Capital Protection”. Based on the client’s funds, an investment portfolio is formed, consisting of deposits, bonds, shares, options, etc. Depending on the client’s personal wishes, he is provided or not provided with a 100% guarantee of return of funds after the investment period. The CG value is determined based on data on acceptable risks, investment period, type of underlying asset and other parameters. The minimum amount of funds for investing in a structured product according to the “Capital Protection” strategy is 3 million rubles. Other products have a threshold of 7 million rubles.

Alfa Bank structured products

Not all structured bank products have a corporate focus. Alfa Bank offers clients structured financial products with an entry threshold of 100 thousand rubles.

Note! In the image above, growth sharing is the profit sharing ratio discussed above. In the event of negative dynamics of the underlying asset, the level of protection of investor funds is negotiated separately.

The share of the underlying asset in the investment portfolio is, as a rule, no more than half. The rest of the portfolio consists of fixed income instruments.

Structured products of the broker "Otkrytie"

The current situation on the structured products market is very ambiguous. A year ago I made a decision about where to invest my free cash. The investment consultant offered me two good options with an entry threshold of 250 thousand rubles and investment capital protection at 100%. The RTS index and SRDR Gold Shares were proposed (see Russian Trading System (RTS, RTS): history, organization of RTS trading, markets, RTS stock index). I chose the second option, because at that time the option was oversold and there was potential for growth.

When signing a contract for brokerage service Attached is the relevant information about the purchased financial product. This information includes the order for the transaction and the formula for calculating profit on the concluded contract. There is no need to have any illusions about profit; its value is unlikely to exceed 25%.

Advantages and disadvantages of structured products

No one can predict the amount of profit that an investor will receive at the end of the structured product. The statistical returns indicated in the description are history and in no way reflect the future.

Advantages of the joint venture:

A joint venture is a comprehensive financial solution that does not depend on any extraneous factors

Presence of minimal trading risks

Possibility of receiving income more than 100%.

Disadvantages of the joint venture:

Long contract terms

Risk of loss of profit in case of unfavorable market situation

High entry threshold.

To summarize, I would like to note that structured products can be formed independently, but only if there is access to the necessary financial instruments. The main advantage of a joint venture is the absence of hidden fees. In addition, assets without a maturity date can be closed at any time.

In general, the topic of structural investments is extremely broad. In this article we tried to cover only the main points financial regulation SP. To understand the scale and usefulness of structured products, I suggest watching a recording of the Finam FM radio broadcast.

Structured Products: General Concepts

At its core, structured products use a fairly simple idea, which is as follows. Let's assume that we find a bank that gives us 10% per annum in rubles. This means that from one million rubles a net income of 100 thousand is obtained - by investing this money in riskier investment products, the investor risks only his profit, while the main deposit remains untouched. True, with this approach it is necessary to take into account inflation, since the amount in rubles will lose part of its purchasing power after a year.

Consequently, when investing in structured products, the client's funds are divided into two components, one of which is usually noticeably larger than the other. The first, larger part, is invested in fixed income instruments, such as bank deposits, bonds, bills or savings certificates; the risk part with increased returns can be stocks, shares of exchange-traded funds, futures, or even assets not related to finance (bet on political events - for example, the current situation with Greece).

There are four possible situations here. The first situation of complete capital protection is discussed above and shown in the figure on the left. In it, all profits (the size of the orange zone) will be invested in risky assets, which, if the outcome is favorable, can provide income 2-3 times higher than the standard growth of the deposit. Those. will turn into a light brown area. If the result is unfavorable, the deposit amount remains unchanged.

In the second situation, the investor can behave more riskily, allocating a part of the deposit to aggressive assets that is greater than bank profits (i.e., in our original example, more than 10%) in exchange for a potential increase in income. As a rule, this happens when the investor, for some reason, is confident in the future change of the asset in the direction he needs. The figure on the right shows a situation where an investor is ready to lose up to 10% of invested funds, allocating 20% ​​of the initial deposit to risky assets - capital protection is 90%. A favorable outcome here doubles the potential profit compared to the left figure, an unfavorable outcome leaves from 1 million rubles to 900 thousand.

Therefore, in terms of potential profitability, structured products represent a compromise between conservative and more aggressive investments:

There is a third situation, when some banks invest only part of the guaranteed profit in risky assets, which allows us to speak of a structured product as an instrument with guaranteed profitability. Those. The investor will receive a formal profit in rubles for any outcome of the risky part of the portfolio - although in an unfavorable case it will be less than inflation. Partially this condition is also connected with Art. 834 Civil Code Russian Federation, which provides for the mandatory payment of interest on the deposit amount - some banks prefer to maintain structured products as a bank deposit. So it is better to check with the specific bank whether your structured product is subject to protection from the DIA. General position only says that individuals(compared to legal ones) in case of bank bankruptcy they will have a priority claim for return.

However, in addition to the described options, there are also those where the size of the client’s loss can potentially be equal to the deposit made. This is the most dangerous type. For example, these could be barrier structural products. Let's say a client invests in a pool of shares and makes a profit provided that none of them fall below a prescribed amount, say 30% of the last high. Breaking this barrier leads to losses proportional to the magnitude of the fall. Or it could be not a single stock, but an entire index of stocks - say, you are betting that the index of European shares will not fall below the value specified in the product. Or you can even bet that an asset will not exceed a certain value, or will remain within a certain interval. In other words, you come to a pure financial casino.

Participation rate

The coefficient is expressed either in numbers or as a percentage. It follows from the formula that the higher the coefficient, the greater the profit - but the greater the risk. In the case of CG > 1, we are usually talking about products using leverage (for example, futures).

Structured company products

From theory, you can move on to practice and see which companies and under what conditions offer similar products to investors (at the moment). Here is a small table

from which it can be seen that among the banks, the best offer in terms of the minimum entry threshold is currently the BCS company.

Structural notes

Structured notes can be considered a type of structured product, since the essence of the proposal remains unchanged - the division of capital into a base and a risk asset. As an investor's financial instrument, notes appeared in the late 1960s in the USA - and the conditional difference between notes and the products discussed above can be considered a high entry threshold and predominantly banking sector offers for this service. At the same time, there may be surprises - for example, Trust Bank depositors lost their money when, succumbing to the persuasion of employees, they decided to transfer their funds from deposits to notes. Read more about this.

Why is a structured product dangerous?

The advantages of structured products include the opportunity to receive a potential income 2-3 times higher than a bank deposit, keeping your capital under protection and only risking not making a profit (however, the risk of bankruptcy of the issuer remains). Structured products are offered by many banks and companies, among which there are also offers with a relatively low entry threshold. However, you need to remember the following things:

• investment may only be available in rubles;

• the terms for which the products are offered (usually no more than three years) make the probability of income close to the toss of a coin;

• management company services are paid, although they are often built into the product;

• there is no ownership right to the structural product, i.e. all assets are registered in the name of the management company and in case of bankruptcy problems arise with the return of capital

Almost all major banks offer structured products as an alternative to deposits. What do investors need to know about these instruments and how risky are they?

Photo: Andrey Rudakov / Bloomberg

Russian banks are increasingly offering their clients structured products - ready-made investment strategies that promise increased returns compared to bank deposits. According to Anton Graborov, director of customer service at BCS Premier, this is due to the fact that it is becoming more difficult for banks to make money on lending and they are seeking to increase profits through commissions on the sale of structured products. Deputy Director of the Product and Service Development Department of Alfa Capital Management Company Danila Panin, however, notes that clients themselves are actively interested in such offers, since rates on classic instruments - deposits and bonds - continue to decline.

In terms of profitability, structured products are ahead of deposits. While the average rate on annual ruble deposits in largest banks now 7.44% per annum, and for deposits - 1.06 and 0.26% per annum, respectively; for structured products, banks often predict (but do not guarantee) a return of 7-25% - this is evidenced by the results of a survey of banks from the top 10 . True, unlike deposits, structured products are not available to a wide range of clients: the entry threshold in the largest banks starts on average from 100 thousand rubles, while for premium clients there are Special offers costing from $100 thousand and above.

Working principle of structured products

A structured product is an investment instrument that is issued by a bank and can be sold through a broker, manager or insurance company. The bank can also sell structured products to its clients directly, explains CEO Management Company "Sputnik - Capital Management" Alexander Losev. At the heart of any such product there will always be a combination of various financial instruments, some of which will provide the buyer with a fixed return (deposits and bonds), and the other part - additional income due to some risky strategy, Panin notes.

Most structured products are designed in such a way that the investor is guaranteed full return amount invested, but the return is not known in advance. “The bulk of the capital, for example 90%, is invested in deposits or bonds. The remaining 10% goes into riskier instruments, for example an option on an asset, which can bring significant income if the investment idea is realized,” explains Graborov.

If expectations are not met and the risky asset falls in price, then this loss will be covered by the income that will bring the bulk of the funds invested in deposits or bonds. Investment life insurance programs work on this principle, as well as structured notes with 100% capital protection - securities, when purchased, the investor actually invests most of the funds in a deposit, and the rest in a risky instrument. For example, through B&N Bank, structured products of BCS are sold for three years with a return of capital. The client can choose one of three underlying assets - ETFs for global medical, financial or IT market indices.

Sberbank, in turn, offers structured bonds, which are essentially the same structured notes. The first issue of these securities was last year (the underlying asset was the dollar exchange rate), the second is expected in the near future. The circulation period of the new issue is two years, the risk-free part of the product comes from a deposit in Sberbank, and the risky part comes from depositary receipts for Gazprom shares. Thus, investors will receive a profit only if by the time the structured bond is repaid, Gazprom’s receipts have risen in price, the Sberbank press service clarifies. The face value of one structured bond is 1000 rubles.

Despite the fact that the buyer of a structured product places part of the funds on deposit by default, this security still cannot be considered an analogue of a bank deposit. Those funds that are deposited under a structured note are not covered by DIA guarantees, recalls Graborov. In addition, the investor cannot find out in advance in which deposit the money will be stored - the counterparty is responsible for this.

“Strategies with full capital protection are closest to deposits, but the profitability in any case depends on the dynamics of the underlying asset,” clarifies the head of the directorate of private banking services, Senior Vice President of VTB Bank Dmitry Breytenbicher.

Barrier notes

Among structured products there is a special category of instruments that is suitable only for risky investors. It's about on barrier notes with conditional capital protection. When investing in these products, the return of all invested funds is not guaranteed, since the investor's investments are not divided into risk-free and risky parts. The entire amount is invested in a basket of assets: stocks, futures for precious metals, currencies and others. If one of the barrier conditions is triggered, for example, the price of one of the assets falls below the level established under the terms of the agreement, then the note ceases to be valid, and the investor receives back not the money, but the depreciated assets themselves for the entire invested amount.

Moreover, depending on the terms of the note, the investor can receive assets at the market price or a slightly higher one (this is how, for example, the Alfa-Select investment strategy works). In the worst case, he will receive the assets at the price that was at the time of purchase of the note - then losses due to a decrease in quotes can be very large. After all, if, for example, the share price fell by half compared to the price at the time of purchase of the note, then the investor will receive half as many shares as were purchased as part of the strategy.

“One of my clients independently purchased a note from a famous foreign bank, and as a result lost 95% of the funds invested in it. The market risk has materialized,” Dmitry Gerasimenko, a consultant at the consulting company “Personal Capital,” gives an example.

Such situations are not uncommon. Buyers of barrier notes, according to the expert, often do not understand all the details and associated risks, paying attention only to the high forecast for the profitability of the paper. Therefore, before buying structured notes, you need to carefully study the prospectus in order to understand under what conditions capital will be preserved and in what cases a profit or, conversely, a loss is possible. In addition, it is necessary to find out in advance the size of all commissions that reduce the final profitability, the expert says. For example, if a client buys a barrier note through a management company, he will have to pay a management fee and the resulting profit (“success percentage”).

ILI policies

Another structured product that banks actively sell to clients is investment life insurance (ILI). ILI products are created by insurance companies and are savings policies with the possibility of investing in various financial instruments. That is, in addition to insurance services, the client receives investment income. If something happens to the policyholder during the program, the program does not terminate. The beneficiary (relative or heir) immediately receives insurance payment, and at the end of the term - the entire amount of investment with possible investment income, explains Lyubov Prokopova, head of research at Frank Research Group in the Affluent & Private Banking segments.

The threshold for entry into these tools, according to her, is on average 100-300 thousand rubles, and the programs themselves are designed for three years or more. The profitability of ILI policies, senior managing director of Sberbank Maxim Chernin, by an average of 3 percentage points. higher than deposits. Meanwhile rating agency ACRA in its March review about a possible bubble in the ILI market. According to analysts, the real profitability of these products is lower than what bankers claim, and in the future, as investor disappointment grows, this could lead to a shock situation in the insurance market. As RBC previously reported, in 2016 sales of these instruments increased significantly in Sberbank, Bank of Moscow and VTB24, as well as Promsvyazbank and Alfa Bank.

Products for remote control

Bank clients can also purchase special structured products as part of investment strategies for trust management under an agreement with management company. In this case, a trust account can be concluded with the client directly at the bank. Sberbank, VTB, Otkritie Bank and Alfa Bank have this opportunity. For example, Sberbank clients can enter into an agreement with Sberbank Asset Management and invest in the Capital Protection strategy. The duration of this strategy is two years, the minimum amount is 3 million rubles. And clients of Otkritie Bank can also enter into an agreement with the management company of the same name. Otkritie Management Company provides an opportunity to invest in the Linear strategy. The underlying asset in this case can be ETFs for the agricultural and IT sectors, as well as shares of several companies - Apple, Walt Disney or Johnson & Johnson.

The entry threshold for such programs is from 100 thousand rubles. up to $100 thousand. Commissions are comparable to investing in mutual funds, says Panin. For their services, management companies charge from 0.1 to 2% of the amount of assets per year. In some cases, companies also charge a commission when purchasing an asset - for example, in Alfa Capital and Sberbank Asset Management it is 3% of the transaction amount. In addition, managers can take a commission on income - the so-called “percentage for success” (up to 20% of profit). The promised return on structured products that underlie the investment strategies of management companies can reach 25% in foreign currency, but the risk in this case will be maximum. As follows from a letter to a wealthy client of BCS Premier (available to RBC), such a strategy involves the purchase of barrier notes on fast-growing American stocks.

Tips for investors

Experts call counterparty risks the main risks for structured products with capital protection. The bank that issues the structured product may default on its obligations. “Here the situation is the same as with deposits: the depositor is at risk because his bank’s license may be revoked; only investments in structured products, unlike deposits, are not insured by the DIA,” warns Graborov.

Structured products themselves are often unclear to clients. “They are actively sold by banks and management companies, but, according to my observations, people often make investments without fully understanding all the details and associated risks. And as a result, they are disappointed,” Gerasimenko emphasizes. This happened with VIP depositors of Trust Bank, who bought the bank’s credit notes from 2007 to 2014. In December 2014 central bank began the procedure for reorganizing the Trust, and the bank into capital. Thus, two thousand people lost the opportunity to return their funds. Some investors are still trying to get payments through the courts.

Structured products may not be profitable to sell before expiration date. “If an investor sells a note ahead of schedule, he will return only part of the invested funds,” explains Gerasimenko. For example, in the case of investment insurance The amount of life will depend on the time remaining until the end of the program, says Prokopova.

“If the program is designed for three years, and the client needs the funds, for example, in a year, then he will be able to return only 60-70% of his money, if the funds are needed in two years - 70-85%,” she notes. The closer to the end of the program, the greater the redemption amount will be: if the funds are needed in Last year validity of the insurance, the client will be able to return up to 95% of the investment, says Prokopova.

The investor also takes on risks associated with currency volatility, Graborov notes. If the contract was in dollars, and the ruble suddenly strengthened, then after its end you may face a loss due to the difference in rates. However, in the opposite situation, the investor, on the contrary, will make a profit.

Dmitry Gerasimenko is convinced that buying structured products with full capital protection is inappropriate. An investor can implement such an investment strategy himself by placing part of the funds on deposit and part in securities or currency. Financial results will be the same, while the investor will also save on commissions, the expert says.

Prokopova adds that purchasing a structured product will not allow the investor to diversify investments. This will be hampered by the cost of the tool itself - it is too high. “For example, the entry threshold for structured notes for a premium bank client is from $100 thousand. Often this can be equal to the entire amount of his savings, which completely excludes the possibility of diversification,” explains the expert.

Alexander Losev also advises investors to learn to independently evaluate the structure of notes. For example, if the yield of a note is tied to a basket of several shares, then you should very carefully read the terms of the note: the note may cease to be valid in the event of negative dynamics of just one of the securities and at any time before the end of the investment period. "The likelihood of a decline in stock prices separate company over a long time horizon is very high, and the buyer of the note risks not receiving income on it,” explains Losev. In this regard, the financier recommends carefully studying the structure of any note and evaluating each company or underlying asset separately.

Today I propose to consider another financial instrument for obtaining passive income – investments in structured products banks and management companies. In this article I will talk about what structured products are, what types they come in, and what are the main pros and cons of investing in this instrument. First things first...

What are structured products?

First of all, let's consider what this investment asset is, what its main essence is, who offers it and for what purposes it was created.

Structural product- this is a package of two or more financial instruments, a kind of, consisting of several assets in a certain proportion, which the investor acquires simultaneously in exactly this ratio. Structured products can include a variety of financial assets, usually these are:

– Speculation in world markets (for example,);

– Options and futures;

- Etc.

Typically, a structured product is created by combining a less risky financial asset with a riskier one, and a larger share of funds is invested in the less risky asset, and a smaller share in the riskier one.

Examples of the most popular structured products:

– bank deposits and shares;

– shares of highly reliable and newly created companies;

– bonds and options;

– bank deposits and savings insurance;

– stocks, bonds and bank deposits;

- etc.

The essence of structured products is to reduce investment risks and insure the investor against loss of capital. The ratio of assets included in the package is usually selected in such a way that the return on the risk-free part covers possible losses risky part of the investment.

Let's look at a simple example. The structured product consists of 90% of a bank deposit at 10% per annum and 10% of a block of shares of newly created companies with a projected return of 300% per annum. The investor purchases this product, after which it is possible different variants outcome of events:

Moreover, in this case, I arranged them according to the increasing level of risk.

Structured products of banks are the least risky, but also the least profitable. As a rule, their profitability, under a successful combination of circumstances, may turn out to be slightly higher than the profitability of deposits (1.5-2 times). Such investment packages of AMC services already look more attractive from the point of view of potential earnings, but there are also more risks. Although in AMC you can find structured products for “every taste” of an investor: both for conservative and for more risky capital owners. Portfolio investment through dealing centers can be called the most risky, as in principle any cooperation with them. Here, the structured product does not include instruments with a reliability close to 100%, for example, bank deposits, and the package is formed, say, from risky and super-risky assets (for example, currency pair and option).

The purchase of a structured product must be accompanied by the signing of an agreement between the company (bank) and the investor, which would clearly stipulate the amount and period of investment, the list and share of assets included in the product, the level of risk limitation (if any) and all other important points related to the transfer of funds, their management and return, together with the profit received or without it.

Types of structured products.

All package investment offers can be divided into 2 types according to the degree of risk:

1. Risk-free structured products– packages that guarantee a return of 100% of the invested capital (as in the example discussed above). By purchasing such a product, the investor only risks that if he does not earn a profit, but only returns the investment, then by that time it will depreciate to a certain extent due to inflationary processes. With this small risk, he pays for the opportunity to make a certain profit if each asset in the product performs as planned.

2. Structured products with limited risk level. Shares of different financial assets in such a product are distributed in such a way as to maximize permissible level loss was recorded. By purchasing such a product, the investor risks losing, but not all capital, but its established share. But if each asset produces the planned income, he can earn significantly more.

Thus, each investor has the right to choose a structured product for himself, focusing on the established level of risk and predicted profitability.

Now let's look at the main advantages and disadvantages of structured products presented today on domestic markets.

Structured products: advantages.

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