Case study: Using enhanced growth thematic investments and Fixed Coupon Notes to reduce risk
Background
A growth focused investor wanted targeted exposure to longterm themes like AI, robotics and automation, but without tying up a large amount of capital in individual shares.
Growth Thematic Investments
Using a series of thematic structured products, the investor committed $48,600 of capital to gain $300,000 of notional exposure across three baskets: broad robotics and automation, logistics and automation, and cobots and humanoid robots, built from global leaders such as Tesla, Taiwan Semiconductor Manufacturing Company, Zebra Technologies, Teradyne, Symbotic and Intuitive Surgical.
Each basket was designed with defined leverage (around 5–7x), a clear breakeven level and three simple outcome paths at maturity: strong performance (upside participation), modest performance (small gain or modest loss) and negative performance (potential loss of the structured note capital). Because only a fraction of the intended equity exposure was deployed into the enhanced growth notes, the remaining $251,400 stayed available to be invested into lower risk fixed coupon investments at around 13.5% p.a., which helped to stabilise overall returns across different market scenarios.
When the three market paths were modelled (down 35%, flat, and up 50%), the combined “enhanced growth plus fixed coupons” approach produced a higher portfolio value than simply buying $300,000 of shares outright in all three cases, illustrating how thematic structured notes can be used to pursue highconviction ideas in a capitalefficient way while still reserving room for defensive income
