Skycastle International Investments
Structured Products & Monetization of Assets
What is a collar/fence?
1. Collars
2. Fences
3. Capital guarantee & Guaranteed return investments
Collars
Who are collars for:
High net worth individuals with a large single holding in a share
What is a collar?
Clients can protect their investments through various structures i.e. collars while maintaining large potential upside and protecting 100% of their downside. Alternatively protecting a portion of their downside. In the underlying share or portfolio i.e. 90% or 80% collar structure
Why do a collar?
The reason for the collar includes diversification to reduce concentration risk and market risk.
Assets are pledged and not sold, therefore no CGT event is triggered
Clients could also monetize their assets (Create liquidity/withdraw funds) on the back of these structures with our respective institutions
Fences
Who are Fences for:
High net worth individuals with a large single holding in a share who are more bullish on their stocks.
What is a Fence?
Should clients not need protection to zero, they can protect the asset down to a certain level. Therefore having the ability to participate in a lot more upside.
Why do a Fence?
An investor would choose a fence over a collar if he was seeking limited protection therefore giving him more upside potential, each structure is tailored to each investor’s specific needs.
Assets are pledged and not sold, therefore no CGT event is triggered
Clients could also monetize their assets (Create liquidity/withdraw funds) on the back of these structures with our respective institutions
Payoff Profile - 100% Protection
Bottom Line
The above 2 structures can be tailor made to suit client risk profile and expectations.
Capital guarantee & Guaranteed return investments
Who should be investing in Capital guarantees & guaranteed return investments?
Clients who are looking to diversify their traditional investments backed by top tier financial institutions to protect investment value or lock in a guaranteed return during tumultuous times.
What is a capital guarantee?
A capital guarantee product means that when an investor buys, or “enters”, this specific structured product there is a guarantee to get back at maturity a part of the totality of the money he invested on day one. Each product has different conditions and risk profiles. Skycastle sources notes from the top tier investment banks globally to provide our clients with risk mitigating solutions.
Skycastle international investments is a South African based company specializing in Investment and Trading solutions in South African and Global financial markets, providing services that are critical to Investors and active traders across the globe.
© 2022 All Rights Reserved