Shorter Term Adds More Value

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    Generally, everything else being equal, a structured product with a shorter term adds more value than one with a longer term, says ‘Analysis of Structured Products in the Context of their Historical Performance,’ a white paper by Jim Otar, of Aftcast.com. Presented at the Structured Products Association annual meeting, it analyzes the historical performance of selected structures products ‒ such as index-linked CDs, principal protection funds, equity-linked notes, equity-linked certificates, and market-index securities. All share a common thread, the protection of the principal and an interest credit that is correlated to an equity performance. The white paper also indicates that over the long term, for the average investor, structured products will provide a larger median asset value compared with holding equity investments.