SG CIB was one of the first equity derivatives players to introduce an offering for institutional investors.

Promoting market education

SG has pioneered research into derivative and structured product solutions for institutional investors. SG has helped institutional investors to gain a precise understanding of:

• the risks involved
• secondary market prices
•  the implications for their investment portfolios

SG regularly sponsors research papers and guides for institutional investors. Recently, it has published:

•  the Guide to structured investment management and the Guide to IFRS standards, in partnership with AF2i
• Structured Form of Investment Strategies in Institutional Investors Portfolios (What is the optimal allocation to structured investment strategies?) in conjunction with the Edhec Business School,
• SG also sponsors a Cass Business School publication: Study on Pension Funds diversification and the use of alternative and structured assets (not yet published).

A dedicated Cross-Asset team for our ALM practice

SG CIB set up the Global Solutions for Financial Institutions (GSFI) joint venture between the Equity Derivatives and the Fixed Income Currencies and Commodities departments to cater to our clients’ ALM needs:

• Insurance and pension issues often involve hybrid solutions requiring multi-asset expertise
• A dedicated team of seasoned structurers support the Equity Derivatives institutional salesforce comprising:
  •  former derivatives or ALM specialists within institutional groups
  •  staff with actuarial, accounting, regulatory, banking and insurance backgrounds
• Examples of some current projects
  •  Hybrid strategies to enhance a liability-driven investment for a UK-based closed defined benefit scheme
  • Innovative solutions for a large Dutch DB scheme studying the trade-off between the interests of pension beneficiaries and those of the corporate sponsor under specific asset-liability constraints
  • Model of an existing pension fund and the integration of structured products in its strategic asset allocation
  • Comparison between rolling short-term hedges with static long-term structured hedging strategies for an insurance company

From flow products to structured products and Equity Finance

The SG Equity Derivatives platform is the largest in the world. It can provide institutional investors with the most innovative flow and structured products or structured alternative investments in the industry. It has also developed an equity finance platform that has played a significant role in the development of the exclusive-direct lending market since it was awarded its first mandate in January 2002.