This document provides an overview of structured products called "Twin-Win" products. It explains that these products aim to provide positive returns regardless of whether markets rise or fall. The document outlines the basic structure of Twin-Win products using diagrams. It notes that these products can lower barriers in exchange for capping upside potential. The document provides examples of how Twin-Win products modify structures and payoffs. It concludes by stating these products can incorporate additional features to make them more attractive to investors.

1. STRUCTURED
PRODUCTS
GUIDE
MAKING A
SENSE OUT
OF IT

2. TWIN - WIN
“Twin-Win = Win- Win Situation”
“ In financial markets, this would mean, whether
you are bullish or bearish, it doesn’t matter, you
get returns in both market conditions!”
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3. Twin- Win Structure
Profit
Investors will get positive
Barrier
returns in both positive and
negative levels, unless the
barrier is breach,
Underlying
0 Index Level
Strike level
Even though, underlying is negative, investors
still get positive payout
Loss Once barrier is breached, investors will get negative payout
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4. Other Considerations
• Use this when market is volatile, and when
we are not sure where the market is
headed.
• Consider, the barrier, whether the
underlying is likely to break the barrier.
• More suitable for shorter tenure (Less than
24 months)
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5. Lower the Barrier
• Note, sometimes, in order to lower the
barrier, the upside potential is capped!
• As such, investors have an increased
level of downside protection, but their
upside potential will be limited.
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6. Twin- Win Structure,
Returns Capped
Profit
Barrier
Underlying
0 Index Level
Strike level Returns are capped
up to a certain level
Barriers are lowered
Loss
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7. Twin Win Structure,
Capital Protected Feature
Investments are protected even if the barrier is breached
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8. Sample Products
• SG 86 Accelerated Twin Win is a London Stock Exchange-
listed instrument that will give
a) 210% positive participation in any rise in the FTSE 100
index, up to a maximum return of 125 per cent, or a
b) 0.5 per cent positive return for every fall in the FTSE 100
index, up to a maximum fall of 60 per cent.
If the FTSE 100 index falls by more than 60 per cent, then
there is one-for-one participation in the loss.
But if the index doesn’t fall that far, capital is protected. So, Source:
in other words, you make a profit if the FTSE rises or falls –
as long as it doesn’t dive to 3,156. “Score on the Footsie as you
follow the footie”
By Matthew Vincent
Published: May 21 2010
www.ft.com
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9. Conclusion
• Twin Win structures can be further modified in
order to enhance the payout structure or to
make it more attractive, such as to add on a
auto-callable feature or other features.
• These features will make the structure more
interesting from an investor perspective!
Contact me at:
ngkaichong@yahoo.com
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