Other

ST Growth Notes Diversified Portfolio III

Max. upside participation3

Term3

53 weeks

Per the amended marketing rules adopted by the SEC, some investment details can only be shown to certain logged-in members.
Status

Closed

Recently funded

Accepting $15,000 - $500,000 investments

Have an account? Log in

Accepting $15,000 - $500,000 investments

Overview

Invest in a diversified portfolio of growth structured notes. With public market volatility at high levels, the portfolio will seek to mitigate some of the downside risks associated with owning stocks, while also allowing investors to participate in a portion of potential upside swings. ST Growth Note Diversified Portfolio III will initially invest in 3 individual growth structured notes, each referencing different underlying stocks; SYSCO Corporation (SYY), Amazon.com Inc (AMZN) and DexCom, Inc (DXCM). Each growth structured note has varying characteristics, including max. upside participation, a downside protection barrier and strike price.

Slide 1 of 3

Premise

Potential benefits of investing in growth notes

  • Our Growth Notes Portfolios allows participation in potential market upswings whilst simultaneously offering protection in the event of further public market declines.
  • The portfolio uses market volatility to its advantage and can be beneficial to investors who are not sure which way the market pendulum will swing.
  • When owned in conjunction with public equities, the risk adjusted return of portfolios can be improved.

Institutional and ultra-wealthy investors have favored structured notes for their strong risk-adjusted return characteristics, especially during periods of heightened volatility

  • Globally, the structured notes market is approximately $3T in size.
  • Used by institutional and ultra-wealthy investors for decades to generate capital appreciation while helping to mitigate downside risk during periods of heightened volatility.
  • Yieldstreet typically purchases structured notes issued by Goldman Sachs, Morgan Stanley, JP Morgan, Citi, Bank of America, Barclays, Societe Generale, Credit Suisse, HSBC, Royal Bank of Canada (RBC), and TD Bank.

Provides investors the opportunity to benefit from upswings in the markets while mitigating downside risk

  • For example, consider an investor invests in a stock of company A and a growth structured note tied to the performance of the underlying stock A.
  • Scenario 1: If the price of stock A has increased by 15% at maturity, investors will receive full principal at maturity plus participate in the full 15% price appreciation
  • Scenario 2: If the price of stock A has increased by 25% at maturity, which is beyond the max. upside participation of 20%, investors will be capped and receive the 20% price appreciation plus full principal.
  • Scenario 3: If the price of stock A has decreased by 20%, the investor will be protected and receive back their principal in full
  • Scenario 4: Only if the price of stock A has decreased by more than 30%, which is the downside protection barrier, will the investor experience principal loss. In this scenario an investor's principal loss would be equivalent to how much the stock's price has fallen since the strike date.
  • For example, if the stock price decreases 35% then the investor would receive 65% of principal back.

See the Private Placement Memorandum which illustrates the outcome if the underlying stock of the structured note falls below the downside protection barrier at maturity.


Tied to the performance of stocks that have been diligently selected

  • Growth structured notes are purchased based on a process that requires each underlying stock to meet certain criteria, which is expected to minimize the likelihood of any significant price decline.
  • Underlying stocks must be Member of S&P 500
  • Market cap >$30B
  • Positive net income for current year
  • Forward P/E ratio less than the sector’s average or
  • PEG (price to earnings growth) <1 or annual revenue growth >20%
  • Bloomberg analyst median target share price > current stock price
  • Moderate recent volatility
  • Relative strength index <70

Parameters in place to ensure growth structured notes meet certain standards at a minimum

  • At least 30% downside protection
  • Max. upside participation between 10-30%
  • Fifty-three (53) week term
  • Each stock will have at least a 90% confidence interval of not breaching the downside protection barrier

Essentials

Please refer to the Private Placement Memorandum in the Docs section for more details about this offering

What are growth structured notes?

How do growth structured notes work?

  • A structured note is a debt security issued by financial institutions. Its returns are linked to the performance of an underlying stock. Structured notes can be income and/or growth focused.
  • For growth structured notes, on the observation date (maturity date), the current price of the underlying stock is measured relative to its strike price.
  • If the current price of the underlying stock on the maturity date is equal to or above its downside protection barrier and its strike price, then the investor will receive their principal back.
  • If the performance on the maturity date is below its downside protection barrier, then the investor will lose principal equivalent to the amount the stock has depreciated from its strike price.
  • If the performance on the maturity date is between the strike price and the max. upside participation then investors will receive full principal at maturity plus the capital gain the underlying stock experienced.
  • If the performance on the maturity date is above the max. upside participation at maturity then investors will receive full principal at maturity but their return will be limited to the max. upside participation.

Please refer to the Private Placement Memorandum for additional definitions and components of structured notes.

Cashflows

How do I get paid?

  • ST Growth Notes Diversified Portfolio III will initially invest in 3 individual growth notes, each referencing a different underlying stock. The portfolio is expected to generate a maximum upside return of 21.5%. Each growth note will have varying characteristics, including a max. upside participation, downside protection barrier and strike price. As such, performance for the portfolio will be calculated on a weighted basis of the performance of each structured note. Each structured note is expected to have a term of fifty-three (53) weeks.

Slide 1 of 3
  • Returns & Management fees

    Management fee

    1.25%

    Max. upside participation

    Login to view
  • Schedule

    Payment schedule

    At maturity

    Term

    53 weeks

  • Structure

    Tax document

    K-1

    Offering structure

    SPV

    Ann'l flat expense

    0.25%

Why people invest in Structured Notes

Krushil P.

Investor since 2018

"Great protection level and coupon rate when these companies have already come down pretty significantly year to date."

George C.

Investor since 2017

"1099 tax form and diversified mix of underlying equities."

Patrick C.

Investor since 2021

"In these uncertain times, I like the downside protection as well as the upside potential."

The testimonials presented on this page have been provided by actual investors in Yieldstreet funds without compensation. Yieldstreet has selected the testimonials, and certain testimonials have been edited to remove personally identifiable information and for brevity. Testimonials were not selected based on objective or random criteria, but rather were selected based on Yieldstreet's understanding of its relationship with the providers of the testimonials. The uncompensated testimonials presented here may not be representative of other investors' experiences, and there can be no guarantee that investors will experience future performance or success consistent with the testimonials presented.

Docs

*Maximum Capital Appreciation represents the maximum percentage increase on invested capital achievable in this transaction. Maximum Capital Appreciation is calculated by taking the avg. of maximum capital appreciation of each underlying note and reducing the anticipated management fees and member expenses from them over the estimated term of the Fund. There is no analysis carried out to support that Maximum Capital Appreciation will be the realized target return or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modeling error, or other reasons.

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS STSNG DIV III LLC ("Fund"). The Offering is made only by means of the Private Placement Memorandum dated June 1, 2022 relating to the Offering (the "PPM"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the PPM, or as incorporated in the PPM by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the PPM or in any marketing or sales literature issued by the Fund or Yieldstreet Management, LLC, as adviser thereto, and referred to in the PPM, and, if given or made, such information or representations must not be relied upon. All investors must read the PPM in its entirety prior to investing in the securities.Maximum Capital Appreciation represents the maximum percentage increase on invested capital achievable in this transaction. Maximum Capital Appreciation is calculated by taking the avg. of maximum capital appreciation of each underlying note and reducing the anticipated management fees and member expenses from them over the estimated term of the Fund. There is no analysis carried out to support that Maximum Capital Appreciation will be the realized target return or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.