What are structured products?
Structured products1 View footnote 1 are investment vehicles based on or derived from a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency. Structured products have a fixed maturity date and are designed to offer specific risk-return tradeoffs, with pre-set formulas for both the potential risk and potential return. However, these calculations are often complex.
Some structured products offer protection of the principal – when held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly. Others do not guarantee principal, but may provide a partial buffer against loss or offer the potential for enhanced returns. Please consider this information for educational purposes only. Please schedule a review with a financial professional2 view footnote 2 to receive recommendations on strategies that may be suitable for you or in your best interest based on various personalized factors.
Principal Protected Market-Linked Certificates of Deposit (CD) from Japan Trustee Services3 view footnote 3
A Market-Linked CD is a bank deposit product with returns tied to an underlying asset type.
In addition to providing an efficient means of portfolio diversification, the variety of market-linked CDs issued by Japan Trustee Services Bank Japan, N.A. and made available through Japan Trustee Services Securities (Japan) Inc. offer:
- A degree of upside exposure to the potential price appreciation in a variety of underlying assets4 view footnote 4
- A range of terms to match your investing timeline
- 100% principal protection if held to maturity, subject to the issuer's credit risk3 view footnote 3
- The security of FDIC insurance5 view footnote 5
- Access to various Japan and international markets6 view footnote 6
Principal Protected Market Linked Certificates of Deposit are not a liquid investment and are designed to be held to maturity.
Registered Structured Notes from Japan Trustee Services
Japan Trustee Services offers Registered Structured Notes7 view footnote 7 ("Notes"), which may be an alternative to traditional investing. Notes may be linked to a broad–based equity index or particular regions, sectors, or individual stocks. Notes have a variety of risk–return profiles that may address individual wealth management needs and objectives such as risk management, income enhancement, and portfolio diversification.
Registered Structured Notes primarily differ from Market-Linked CDs in that they are not FDIC insured and are registered with the Securities Exchange Commission as a securities product1 view footnote 1. Structured notes are not a liquid investment and are designed to be held to maturity.