Glossary - U

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.

Uncapped Call

A return based on a fixed participation in the rise of an underlying market that is uncapped

Uncapped call product

An uncapped call product is a type of structured product in which the return is based on a call option and there is no limit or cap on the potential return.

A typical example would be a product that provided a minimum return of 100% of the sum invested plus 80% of any rise in the FTSE100 index.

Uncapped Put

A return based on a fixed participation in the absolute value of the fall of an underlying market that is uncapped

Underlying

All structured products provide a return based on the performance of some underlying price or index. The most popular underlyings used are equity indices such as the FTSE100, S&P500, etc.

Other underlyings however can be baskets of individual shares, indices of house prices, the prices of managed funds including hedge funds, and a variety of other financial assets.

Unit Trust

An investment fund that issues units for public sale, the holders of which are creditors and not shareholders.

Universal Bank

A financial institution that provides a wide range of services for both retail and corporate clients such as retail, commercial and investment banking.

Unregistered

The note is not registered with the local regulator

Unregistered Note

A note, not registered with the local regulator