At Banque Privée Edmond de Rothschild SA our main objective is to make your portfolio perform well over the long term. Accordingly, we have a Structured Solutions Dept with expertise and an investment philosophy geared entirely towards serving clients with tailor-made products.
The 2008-09 financial crisis cast a shadow on structured products, which were criticised as often being incomprehensible and opaque. For our Structured Solutions Dept, understanding and defining our clients' objectives is key to proposing transparent solutions based on underlying assets ranging from shares to currencies to commodities to interest rates. Our open architecture provides access to the main issuers in the structured products market, allowing us to obtain the best terms with no conflicts of interest.
We divide structured solutions into four categories, depending on your return objective and risk profile:
- Capital protection: These are defensive solutions as the issuer guarantees repayment of the initial outlay at maturity. The investor can nevertheless participate in the appreciation of risky assets such as emerging currencies and commodities.
- Performance optimisation: These are higher-yielding solutions that generally feature contingent capital protection and a coupon. They are particularly well suited for equities or other assets when the investment outlook is dim.
- Participation: This is an alternative to holding conventional assets such as shares, bonds, commodities or currencies directly but with a different risk profile (e.g. upside leverage and contingent downside capital protection).
- Leverage: These are highly speculative products with upside or downside leverage on the underlying asset.
In order to offer the solutions that are best suited to our clients' expectations, we have also set up a system of collaboration featuring strict adherence to guidelines and full integration of the Bank's asset allocation grids:
- structured solutions are incorporated in your portfolio on the basis of securities and economic research conducted within the Bank
- our Executive Committee and Risk Control Dept decide which issuers we can recommend to clients.
The Structured Solutions Dept is made up of specialists with experience in wide-ranging market segments including equity derivatives, forex derivatives and quantitative strategies. In addition to this diversity we have cutting-edge knowledge of technical developments thanks to training and professional accreditation. Thus, we can always provide you with the latest tools and keep you abreast of rapidly changing investment scenarios.
Your account manager can moreover count on experts with a thorough grasp of our department's structured investment philosophy. And we do not simply monitor existing positions; we attach the utmost importance to developing new investment ideas.
Our success is illustrated by clients' continuing demand for structured solutions. This interest is based on dialogue and on the desire to share in our expertise, in order to build products that will deliver performance.