Structured products consist of a traditional investment such as shares or fixed-interest investments and a derivative financial instrument. From a legal point of view, structured products represent obligations or debt claims against the issuer. The creditworthiness of the issuer or of a guarantor of the structured product is therefore of vital importance for the investor.

Structured products are suitable for experienced investors who want to invest on rising, falling or sideways-trending markets on a product-by-product basis. When selecting products, investors should consider all risks and ideally evaluate them in the context of the overall portfolio rather than just the individual product.

To get an overview of how structured products work, PostFinance has compiled a brochure with all important information, which explains the categories on offer (capital protection, participation and yield enhancement) in detail.

The link will open in a new window Structured products (PDF)

The Swiss Structured Products Association (SSPA) offers you further comprehensive information on structured products.

The link will open in a new window More information is available from sspa.ch

Structured products involve the following risks, which can result in price fluctuations and, in extreme cases, even in total losses:

• Issuer risk: issuer risk includes unfavourable developments of the structured product resulting from the creditworthiness of the issuer.
• Market risk: market risk is the risk of possible losses due to unfavourable developments of the structured product’s underlying asset.
• Currency risk: currency risks include unfavourable developments in the repayment value and the secondary market price for structured products, caused by exchange rate fluctuations.
• Liquidity risk: liquidity risk arises if the structured product is not traded frequently during its term and cannot be sold at a appropriate price.

Detailed information on the structured products and their risks can be found in the brochures below.

The link will open in a new window Structured products(PDF)

An in-depth insight into the risks involved in trading financial instruments can be found in the brochure below from the Swiss Bankers Association.

The link will open in a new window Risks Involved in Trading Financial Instruments (PDF)

The Swiss Structured Products Association (SSPA) offers you further comprehensive information on structured products.

The link will open in a new window More information is available from sspa.ch

Other risks may exist depending on the type of structured product. More information on this subject can be found in the documentation of the respective structured product. These documents can be obtained free of charge by calling our Investment Business Support team on 0848 900 009 (max. CHF 0.08/min. in Switzerland).

Structured products offer the following advantages compared to other investment instruments:

• Structured products allow everyone to form an opinion about the market. They can therefore focus on rising, falling or sideways-tending price developments.
• Depending on the form of a structured product, it can cater for every risk profile.
• With structured products, you can invest in any investment class, benefiting from a broader diversification than with traditional investment classes.