The Concept

    Structured products represent a new type of investment vehicle. They are financial instruments designed to meet specific investor needs by incorporating special, non-standard features, including capital protection, warrant and traditional loan gearing, exposure to overseas equities, commodity hedge arbitrage, and "share index" style investment.

Structured products are synthetic investment instruments specially created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used: as an alternative to a direct investment; as part of the asset allocation process to reduce risk exposure of a portfolio; or to utilize the current market trend.

Combinations of derivatives and financial instruments create structures that have significant risk/return and/or cost savings profiles that may not be otherwise achievable in the marketplace. Structured products are designed to provide investors with highly targeted investments tied to their specific risk profiles, return requirements and market expectations.

These products are created through the process of financial engineering, i.e. by combining underlyings like shares, bonds, indices or commodities with derivatives. The value of derivative securities, such as options, forwards and swaps is determined by (respectively, derives from) the prices of the underlying securities.

The market for derivative securities has grown fast in recent years. The main reason for this lies in the economic function of derivatives; it enables the transfer of risk, for a fee, from those who do not want to bear it to those who are willing to bear risk.

Find out how you can leverage from the knowledge and offer at Structured Products World Asia 2007! If you have topic or speaker suggestions, or you would like to present and speak at the event, please contact

Chor Siew Pin (Ms)
Conference Manager
Tel: (65) 6322 2719
Email: siewpon.chor@terrapinn.com