The Power & Considerations of Structured Notes

Structured Investments offer a wide range of strategies designed to meet diverse investor needs. At Cetera, while we frequently utilize Auto-Callable Growth and Contingent Coupon Income Notes, we have access to a broad suite of approved strategies. Our goal is to tailor each investment approach to your unique financial objectives, risk tolerance, and time horizon.

understanding Auto-callable notes

Auto-Callable Contingent Coupon Income Notes may provide an attractive yield and a degree of downside protection, making them a potential tool for income-focused investors. Similarly, Auto-Callable Growth Notes can offer enhanced performance opportunities through call premiums and structured downside buffers. However, it’s important to understand that these features are subject to specific market conditions and the creditworthiness of the issuing bank.

*A diversified portfolio does not assure a profit or protect against loss in a declining market. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Wealth Services, LLC nor any of its representatives may give legal or tax advice.

key characteristics of structured notes

Structured Notes are unsecured debt obligations issued by financial institutions. Their performance is linked to the underlying asset or index, and they may offer benefits such as:

Upside potential through participation rates, call premiums, or interest payments.
Downside protection via buffers, depending on the structure.
Customization to align with specific investment goals.

However, these notes carry issuer credit risk, meaning repayment depends on the financial strength of the issuing bank. They are not FDIC-insured (unless they are specifically a Market-Linked CD) and may lose value, including principal, if the issuer defaults.

Who Might Consider Structured Notes?

Structured Notes may be suitable for a variety of investors, including individuals saving for retirement, business owners, corporations, non-profits, and foundations. When used appropriately, they can complement a diversified portfolio and help address specific investment needs.

*A diversified portfolio does not assure a profit or protect against loss in a declining market. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Wealth Services, LLC nor any of its representatives may give legal or tax advice.

Types of Structured Notes & additional information

Market Linked Products - A general overview brochure on Market Linked Products.

Statement Value - a general overview brochure on how Structured Notes are valued, on paper, during the life of a note.

Market Linked Notes - A Market Linked Note (MLN) offers a portion of principal protection (but not full), subject to the credit worthiness of the issuer, with no FDIC insurance.

Principal Protected Notes (PPN) - A Principal Protected Note (PPN) offers 100% principal protection (as long as the note is held until maturity), subject to the credit worthiness of the issuer, but does not have FDIC insurance.

Market Linked CDs - A Market Linked CD (MLCD) offers 100% principal protection up to the applicable FDIC insurance limits.

FDIC Insurance - A general overview brochure that describes how FDIC insurance works.

Buffered Notes - A general overview brochure that explains how buffers work within a Structured Investment.

Strategies

Market Linked Notes - AutoCallable Growth - A general overview brochure that describes the Auto-Callable Growth strategy within the MLN vehicle.

Market Linked CDs/Principal Protected Notes - Auto-Callable Growth - A general overview brochure that describes the Auto-Callable Growth strategy within the MLCD/PPN vehicle.

Market Linked Notes - Dual Directional - A general overview brochure that explains how the Dual Directional strategy works.

*All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Wealth Services, LLC nor any of its representatives may give legal or tax advice.

Important Disclosures

Structured Notes are complex financial instruments and may not be suitable for all investors.
Structured Notes are subject to market risk, liquidity risk, and credit risk.
Investors should carefully review offering documents and consult with a financial professional before investing.