QUESTIONS & ANSWERS

A structured product is a financial instrument created by a bank, offering the possibility of earning a return based on a predefined scenario established in advance. It combines features from different asset classes (equities and bonds) to provide a pre-defined return while offering partial or full protection of the invested capital. Structured products frequently incorporate derivative instruments in their design.

A derivative is a financial contract that is linked to another asset called the “underlying” (which can be a stock, bond, commodity, or index). Its value depends on the value of its underlying asset over time.

A structured product is not listed on the stock market and offers additional and alternative diversification compared to traditional financial investments. A derivative product is listed on the stock market and is used either to hedge against risks or to speculate on price fluctuations.

Athena products are structured products known as “autocall,” meaning they allow for an automatic early repayment of the capital and the gain if certain conditions are met. The income from an Athena product is only received at the time of its repayment, in a single payment.

Phoenix products are structured products known as “autocall.” They work like Athena products, but with an additional layer of complexity: the inclusion of a coupon barrier. If the underlying asset is above the coupon barrier, the product pays a coupon even when it is not redeemed early. Thus, a Phoenix product can pay coupons during its lifetime. This allows the investor to lock in the income received, even if the product has not yet been called.

Phoenix products sometimes include a “memory effect.” In this case, when on an observation date the conditions for paying the coupon are not met, that coupon is “stored in memory,” and on the next observation date, if the conditions are met, the coupon for the current period is paid together with the coupon from the previous period.

A green structured product is a financial instrument designed to finance projects that have a positive impact on the environment, such as renewable energy, energy efficiency, or natural resource management. Through the use of green bonds in their structure, these products allow investors to combine financial performance with sustainable investments, thereby contributing to the transition toward a greener economy.

For several years, Natixis has had a team of experts (the “Green & Sustainable Hub”) that helps design innovative products and investment solutions in green and sustainable finance.

A green bond is a type of bond whose proceeds are exclusively used to finance or refinance loans dedicated to environmental projects with a positive environmental impact, such as the development and renovation of green buildings, renewable energy projects, organic farming, the preservation of natural areas, as well as infrastructure for low‑carbon transport. Green bonds allow investors to combine financial performance with responsible investment, thereby contributing to the transition toward a more sustainable economy.

A social bond is a type of bond whose proceeds are exclusively used to finance or refinance projects with a positive social impact. They allow investors to combine financial performance with social responsibility, thereby contributing to sustainable and equitable development.

An ESG (Environmental, Social and Governance) structured product incorporates environmental, social, and governance criteria into its design and assessment. These products aim to generate financial returns while adhering to ethical and sustainable standards. Investing in ESG structured products allows investors to support companies and projects that adopt socially and environmentally responsible practices.

For several years, Natixis has had a team of experts (the « Hub Green & Sustainable ») that helps design innovative products and investment solutions in green and sustainable finance.

Structured products are tailor-made instruments designed to meet investors’ specific needs. They can offer capital protection, potentially high returns, and allow portfolio diversification by providing access to markets or assets that might not be easily accessible through other means

Risks include product complexity, illiquidity, counterparty risk, and market risk. It is important to understand the underlying mechanisms before investing, as a loss of capital is often possible if market conditions are unfavorable.

Economic events can affect structured products by influencing the performance of the underlying assets, increasing market volatility, changing return expectations, impacting interest rates, altering risk perception, reducing liquidity, triggering regulatory changes, causing spillover effects between markets, leading to adjustments in hedging strategies, and encouraging the development of new products adapted to emerging trends.

Our Economic Research team continuously analyzes economic events and provides strategic insights that help assess their potential impacts on our structured products and guide our clients’ investment decisions.

Structured products are intended for informed investors who have a good understanding of financial markets and of their own portfolio situation. There may be minimum investment requirements and specific constraints depending on local regulations

You can purchase Natixis structured products through our financial advisors or through the distributors that market our offerings via our Banques Populaires and Caisses d’Epargne networks, or via insurers, private banks, or brokers.

Natixis is financially supported by Groupe BPCE, notably through its guarantee and solidarity mechanism. This means that BPCE can step in to restore Natixis’s liquidity or solvency if needed. The solidarity within the group also makes it possible to mobilize financial resources to support affiliated entities in difficulty, thus ensuring the stability and financial strength of the group as a whole.

It is essential to read the prospectus and product documentation, which provide details on the structure, risks, costs, and performance scenarios. Understanding the factors that may influence the product’s performance is also crucial.