Three structured notes that follow one of the media stocks are included in the investment portfolio, as well as an opportunity to get low-risk exposure to the price movement of three of the best performing media stocks. With investment ranging from $15,000 to $500,000, investors can be part of a $1.5 million investment fund with an expected annualized yield of 11% to 12%.
How do structured notes work? A structured note is a debt security with returns linked to the performance of an underlying stock. If the performance of the underlying stock is the same as or above its downside protection value, then the investor will receive their coupon for that period. If it is below, the investor won't earn their coupon for that period.
The investors will receive their full principal back if the underlying stock is above or above its downside protection value at maturity. If it is below its downside protection value at maturity, the investor will receive less than their full principal back.
The amount of original principal will be reduced by the percentage decrease the underlying stock value falls relative to its strike price. The structured notes offer investors with the help of the downside risk protection.
These characteristics are accompanied by a 24 month initial maturity with an option to extend it another 12 months and a quarterly payout schedule.
With this in mind, those who want to diversify their portfolios with high quality media companies that have high probability of producing steady quarterly returns may find this offering attractive.