Continuous products

The available product structures for continuous structured products are Call Overwriting, Callable, Click Fund, CPPI, Floor, Leverage Long with stop loss, Leverage Short with stop loss, Leverage with stop loss, Rolling and Variable Annuity, which are defined below.

  • Call Overwriting: A strategy, also known as Buy-Write or Covered Call writing, which generates a return from the purchase of an underlying share or shares and the simultaneous sale of a call option or options on that same underlying. Callable: A product that can be redeemed early by the issuer.
  • Click Fund: These are funds using a combination of a static bond and a call mechanism to achieve portfolio protection. The ratio of risky to non-risky assets is fixed, with a regular (usually monthly) rebalancing of the assets according to that ratio.
  • CPPI: Constant Proportion Portfolio Insurance (CPPI). An investment strategy whereby funds are allocated dynamically between two types of assets, a risky asset (equity, managed funds…) and a non-risky asset (cash, bonds…). The allocation is determined by a prescribed formula and designed to preserve capital at a future date.
  • Floor: This type of open-ended fund allows for a protected level to be set at regular intervals, typically once a year. Most of the investment will be placed in equities, the rest in buying put options and selling call options.
  • Leverage Long with stop loss: The product provides a return equivalent to a leveraged long position in an underlying. If the underlying falls to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position.
  • Leverage Short with stop loss: The product provides a return equivalent to a leveraged short position in an underlying. If the underlying rises to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position.
  • Leverage with stop loss: The product provides a return equivalent to a leveraged long or short position in an underlying. If the underlying rises (leverage short) or falls (leverage long) to a specified Stop Loss level the product ends and returns the original investment less the leveraged loss at that time. The Stop Loss level is adjusted every month depending on the level of the underlying and the implied financing of the leveraged position.
  • Rolling: This type of open-ended fund is composed of short term cash and derivative products rolling one after another, allowing for protection levels to be guaranteed at specific dates (e.g. once every quarter). Most of the investment is placed in deposits, the rest in buying options.
  • Variable Annuity: A life insurance or pension-wrapped product linked to a range of actively-managed funds and offering various guarantees for example, a minimum guarantee on the portfolio value at a future date, guaranteed annual growth or the minimum income available at retirement.

Register with us to view Continuous Products data

Sign Up now for access to our news and data.

Sign Up