STRUCTURED CERTIFICATES

What are Discount & Autocallable Structured Certificates?

These certificates are a type of Yield Enhancement structured product that offers investors a predefined enhanced yield upon fulfilling certain conditions.

Issued by financial institutions and listed on SGX, the certificates are linked to single equities with a 6-months to 1-year maturity, with the original amount invested at risk.

Structured Certificates are classified as Specified Investment Products (SIP) hence investors should possess either a high level of investment knowledge or experience before transacting in them.

How it Works?

Conditional Distributions

Both Discount & Autocallable certificates offer regular Distribution payments at a defined rate, subject to fulfillment of certain conditions.

Cash or Physical Settlement

For both Discount & Autocallable certificates, investors will receive the original amount invested at maturity subject to certain conditions on the underlying share price movement, however if it falls below a certain lower threshold, investors can potentially elect to receive physical delivery of the underlying shares at expiry.

Automatic Early Expiry

For Autocallable Certificates only, if the underlying stock rises above a certain upper threshold, the certificate might be redeemed early and investors will be returned their original amount invested.

Risks

• •   Complex payout structure
• •   Issuer and guarantor risk
• •   Market price affected by many factors
• •   Secondary market may be illiquid

Click here to learn more about the risks