Why diversify using international Structured Products?
If you’re managing your finances across borders, you already know how challenging it is to stay ahead of volatile currency markets, shifting geopolitics, and fluctuating markets. These aren’t just theoretical risks – they’re part of your everyday financial reality.
To protect and grow your wealth in this complex environment, you need more than intuition. A well-diversified portfolio spreads investments across asset types, geographies and markets, shielding wealth from unpredictable market swings.
One financial tool you can use to build global diversification into your portfolio is to hold Structured Products as part of your portfolio. This is because they can offer a more balanced approach that safeguards your capital while also giving you exposure to global markets.
Why diversification matters
Diversification is more than a way to reduce risk – it’s a safeguard against the uncertainties of global markets. It has long been the cornerstone of successful investment strategies because it spreads your risk across investment types.
Even though investing offshore can help reduce exposure to domestic risks, it doesn’t eliminate risk altogether. Global investments come with their own set of challenges – from currency movements and geopolitical events to foreign regulations and broader market volatility. True diversification means spreading your risk not just across borders, but also across asset classes, industries, and economic cycles. That’s what creates a more resilient investment strategy.
Structured Products simplify your diversification efforts by giving you access to a range of different markets and indexes, helping to create a more well-rounded portfolio able to withstand short-term changes.
What are Structured Products?
Structured Products combine capital protection* with the potential for market-linked returns. These tailored solutions are ideal if you’re looking to diversify across global markets without exposing your core investment to unnecessary risk.
Because your investment goals are unique to your specific circumstances, Standard Bank Offshore offers a selection of Structured Products designed to differing needs and priorities. For instance, typical Structured Products we offer include:
- Defined Return Deposits: These focus on predictable outcomes by offering fixed returns linked to specific market thresholds. These products provide a stable component in a diversified portfolio.
- Quantum PLUS Deposits: Combine guaranteed returns with uncapped growth potential from indices like the S&P 500. This structure diversifies exposure across secure and market-linked assets.
- ESG Index-Linked Deposits: Add sustainability to your portfolio with returns tied to environmentally conscious indices. These products enable you to align your financial goals with your values.
- Deposit PLUS Products: Offer proportional returns based on index growth, enhancing your portfolio's exposure to specific markets or sectors while ensuring capital protection.
How Structured Products help you diversify
- Access to global markets: Structured Products connect your portfolio to international indices, giving you exposure to diverse markets. This reduces your reliance on a single market or asset class, spreading risk and increasing opportunities for growth.
- Currency options: Diversifying across multiple currencies is essential if you’re managing your finances internationally. Structured Products provide flexibility by allowing you to invest in various currencies.
Benefits of Structured Products
Structured Products offer several advantages that make them an integral part of a diversified portfolio:
- Capital protection: Safeguard your wealth while exploring growth opportunities.
- Enhanced growth potential: Access market-linked returns without full exposure to volatility.
- Flexibility: Choose products tailored to your needs, whether you prioritise sustainability, specific currencies, or defined outcomes.
Structured Products are particularly valuable for medium-term financial goals, striking a balance between stability and growth. By providing access to diverse markets, they lower your overall investment risk without turning your back on growth opportunities in global markets.
How Standard Bank Offshore supports diversification
At Standard Bank Offshore, we offer Structured Products designed to meet the needs of global citizens. Our solutions allow you to diversify effectively, ensuring your portfolio remains resilient in an ever-changing financial landscape.
