These indices are known for their long-term resilience and relatively quick recovery following market downturns—making them ideal foundations for structured notes. Unlike volatile markets like Brazil or India, these major indices provide the stability and predictability required for effective long-term planning. 

Two Smart Structures – Different Strengths 

We focus on two specific types of indexed structured products, both of which serve distinct client needs depending on income preferences and investment timelines. 

1. High Coupon Trigger Notes (100%) 

These structured notes only pay a coupon when the indices are at or above their initial level on a given observation date. 

Key Features: 

• Coupon Trigger: 100% of the initial index level 

• Capital Protection: Typically protected unless the index falls below a barrier (e.g. 60%) at maturity 

• Returns: High coupons, but less frequent payments 

• Income Timing: May not pay anything during early years if indices underperform 

• Use Case: For clients comfortable waiting for the market to recover in exchange for a larger payout 

2. Low Coupon Trigger Notes (e.g. 85%) 

These pay regular income as long as the indices remain above 85% of their starting level—even if the market has fallen. 

Key Features: 

• Coupon Trigger: 85% of the initial index level 

• Capital Protection: Same as above (usually at maturity) 

• Returns: Lower coupons, but more consistent income 

• Income Timing: Pays regularly unless there’s a significant market drop 

• Use Case: Ideal for clients needing steady income and a buffer against mild volatility 

What They Have in Common 

Both types of notes often include: 

• Major Index Exposure (S&P 500, FTSE 100, EuroStoxx 50) 

• Capital protection barriers at maturity (commonly around 60–70%) 

• Auto-call features, allowing the note to mature early when certain performance conditions are met 

Why I’d Use Both? 

As a balanced investor myself, I find the combination of both note types delivers the best of both worlds: 

50% in Low Coupon Trigger Notes: 

• Provides steady income 

• Helps cover platform charges, advice fees so more of your money can stay invested 

50% in High Coupon Trigger Notes: 

• Targets higher long-term return 

• Allows for upside capture once the markets recover 

By using both structures, advisers can help clients: 

• Receive predictable cash flow 

• Access enhanced total returns 

• Maintain capital risk within acceptable levels 

Who Is This Strategy Suitable For? 

This balanced approach works well for: 

• Advisers managing client portfolios in uncertain markets 

• Balanced and conservative investors seeking alternatives to bonds or funds 

• Clients needing regular income from their portfolio 

• Investors looking to add defined return strategies to their holdings 

Final Thoughts 

Indexed structured products are not all created equal, but when built on strong indices and structured with care, they can form a valuable core or satellite investment in any client’s portfolio. 

By combining high and low coupon triggers, advisers can offer clients both consistency and growth—without stepping outside acceptable risk boundaries.