Structured Yield AMC: Actively managed strategy using Structured Products

The Structured Yield AMC provides investors with access to a broadly diversified index strategy consisting of structured products. An experienced team of specialists actively manages the index composition and continuously adapts it to changing market conditions. Through a single investment, investors gain access to a professionally managed strategy.

The Strategy at a Glance

The Structured Yield AMC tracks an index consisting of 20 to 50 structured products. At least 90% of the index composition is allocated to yield enhancement products linked to global equity indices.
The index is actively managed by the Index Advisor. Different maturities, product features and underlying assets are taken into consideration to achieve broad diversification within the strategy.
The share class is distributing. Distributions are generally made twice a year. The amount and timing of distributions are determined by the Index Advisor and are not guaranteed.

How Is the Index Constructed?

The strategy focuses on yield enhancement products such as Autocallables with conditional coupons and Barrier Reverse Convertibles. The underlying assets primarily consist of global equity indices, which form the core of the strategy. When selecting structured products, the Index Advisor considers various factors, including market conditions, volatility levels, maturity, coupon structure and barrier distance. The structures used typically have maturities ranging from six to 36 months. The index is also subject to clear construction guidelines. For example, the structured products included generally feature a minimum barrier distance of 30%. In addition, only European barriers are used, meaning they are observed solely at maturity. Furthermore, the index consists exclusively of Quanto products with the Swiss franc (CHF) as the reference currency, reducing the direct impact of exchange rate fluctuations on investors.

Why an Actively Managed Approach?

Structured products may mature or be redeemed early during their lifetime. As a result, decisions regarding the reinvestment of released capital must be made on a regular basis. These responsibilities are undertaken by the Index Advisor within the Structured Yield AMC. The Index Advisor continuously monitors the index composition and adjusts it whenever necessary in response to changing market conditions. Market volatility plays an important role in this process. As volatility significantly influences both the structure and attractiveness of yield enhancement products, the Index Advisor uses a proprietary volatility model to identify suitable opportunities for adding new structures to the strategy.

Key Risks 

Structured products are complex financial instruments and are not suitable for all investors. Depending on market developments, investors may incur losses up to and including a total loss of the invested capital. In addition, issuer, market and liquidity risks apply. Distributions are made at the discretion of the Index Advisor, are not guaranteed and may consist partially or entirely of a return of capital.