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In 2021, finding yield was a challenge for every adviser. Near-zero cash rates forced income-focused clients toward dividend stocks and higher-risk bonds — both of which carried greater volatility and capital risk.
One of our adviser partners came to Stropro on behalf of a corporate treasury client with a clear objective:
Generate more income than a simple bank deposit, without taking on excessive downside risk.
The Adviser’s Challenge
- The RBA Cash Rate was near 0%
- Dividend stocks offered yield but came with volatility risk
- Hybrid bonds yielded ~3.2% p.a. but with limited downside protection
- The client needed short-term, capital-protected income solutions
The Stropro Solution
We collaborated with the adviser to design a suite of short-term structured investments suited to different levels of risk tolerance. Two solutions stood out.
1. Australian Banks Fixed Coupon Note
- Return: 5% p.a. paid quarterly over 1 year
- Downside Barrier: 30% — capital preserved unless the basket fell more than 30%
- Outcome: Matched bank dividend yields with lower risk and higher protection than hybrids
Result for the Adviser:
The note matured successfully, delivering the 5% income even during 2022’s volatility when bank stocks fell up to 24%.
2. Institutional “Cash and Carry” Trade
We also secured access to an institutional-exclusive yield trade — a cash and carry strategy linked to Ethereum futures.
- Return: 5% p.a. over 2 months
- Capital & coupon: 100% guaranteed (provided the futures market existed)
- Yield Source: Market pricing discrepancies in Ethereum futures (contango)
- Competitive Edge: Adviser could offer a high-yield, short-term strategy unavailable to most retail clients
Following this, we have offered advisers similar opportunities linked to carbon futures.
Key Takeaways for Advisers
This case shows how advisers can use Stropro’s platform to:
- Expand client solutions in low-rate environments
- Deliver capital preservation with enhanced yield
- Access institutional-only strategies from multiple global issuers
- Execute quickly on short-term tactical ideas
"In a low-rate environment, I can access institutional-grade structured notes and specialist trades through Stropro — allowing us to match or beat dividend yields while protecting capital." Said the Adviser..
If you have corporate, SMSF, or high-cash-balance clients facing low yields, speak to our team to see how we can design a tailored income solution for them.
Register on the Stropro platform
Author: Stropro Investment Desk
For wholesale, sophisticated, and professional investors only. This is general information and not personal financial advice.
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