Amid escalating market volatility sparked by President Trump’s April 2 tariff announcement, some investors are turning to structured products for potential enhanced returns and risk diversification. But what exactly are structured products —and what does Ancoria have to offer?
Structured Products are investment products where the return is linked to an underlying asset with pre-defined features like maturity date, coupon date and capital protection level. A structured product can be seen as a product package using three main components: a bond, one or more underlying assets and the financial instruments linked to these underlying assets.
An example of a structured product involves the investor giving up the potential upside exposure to the underlying asset in exchange for an enhanced coupon that can be either guaranteed or conditional. The investor is not exposed to the downside exposure, unless the underlying asset breaks through a predefined barrier set at the inception of the product. Other risks include issuer risk, liquidity risk, exposure to the performance of the underlying asset, exchange rate risk etc.
Ancoria Insurance offers structured funds that invest in structured products issued and guaranteed by at least five different highly ranked financial institutions, to reduce issuer risk.
Ancoria 3-Year SEK Autocall 7.25% Fund – Autocalled on 06.03.2025
The structured fund was autocalled on the 6th of March 2025, one year after its start date, as the OMX Stockholm 30 Index closed at 2,733.02, well above the initial strike level of 2,460.81. As specified in the fund conditions, on the 27th of March 2025, clients who invested in this fund received their initial investment amount plus an additional cash amount equivalent to a net return of 6.25%.
New structured fund in SEK with conditional coupon 7.2% per annum – Launched and subscribed in full
This structured Fund was launched in March and was subscribed in full. The Fund gives policyholders the opportunity to earn an attractive gross return of 7.2% per annum with a yearly early redemption feature as well as conditional capital guarantee at maturity, depending on the performance of the OMX Stockholm 30 Index.
New structured funds in SEK and EUR to be offered later in the year
Market conditions permitting, we are planning to offer later in the year new structured funds in SEK and EUR that will give investors an attractive gross return with a yearly early redemption feature as well as conditional capital guarantee at maturity.