Skycastle Group

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 to collar include 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 all the way to zero, they are able to 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.

I would like to take advantage or find more info on how to monitise my portfolio

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 instructions 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 he is guaranteed to get back at maturity a part or 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 their clients with an edge they need.

Skycastle is a South African based group of companies 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.

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