The Evolution of Cybersecurity: Strengthening Financial Portfolios through Structured Products

In today’s hyper-connected digital landscape, the importance of cybersecurity cannot be understated. As cyber threats continue to evolve in sophistication and scale, the development of cybersecurity has become a critical priority for governments, businesses, and individuals alike. The journey of cybersecurity from its early days of simple firewalls to the current era of advanced threat detection and artificial intelligence-driven protection has been remarkable. The exponential growth of data and the increasing reliance on technology underscore the need for robust cybersecurity measures to safeguard against potential financial losses and reputational damage.

For those seeking to diversify their clients’ portfolios, structured products featuring cybersecurity offer a promising avenue for portfolio diversification. As the significance of data privacy and digital security continues to gain prominence, companies specialising in cybersecurity are well-positioned for potential growth, thus providing investors with opportunities for capital appreciation.

We have recently launched our 1 Year Fixed Income Cybersecurity note in conjunction with Barclays. Offering a fixed (guaranteed*) coupon rate of 11.00% p.a., the coupon will be paid on quarterly payment dates until maturity, regardless of the performance of the Underlyings. At the Final Observation date, if the Underlyings are at or above the Capital Protection Barrier, then full capital is returned.

This product is linked to 3 leading companies in the cyber security world: Crowdstrike Holdings Inc, Fortinet Inc and Zscaler Inc.

Crowdstrike Holdings Inc. is a leading cybersecurity company based in Sunnyvale, California. Founded in 2011 by George Kurtz and Dmitri Alperovitch, the company has become a prominent player in the field of endpoint security and threat intelligence. Crowdstrike’s primary product is its cloud-native Falcon platform, which offers endpoint protection, threat detection, and response services.

Fortinet Inc. is a global cybersecurity company headquartered in Sunnyvale, California. Founded in 2000 by Ken Xie, the company specializes in providing a wide range of cybersecurity solutions and products, with a focus on network security and unified threat management (UTM).

Zscaler Inc. is a cloud-based cybersecurity company headquartered in San Jose, California. The company was founded in 2007 by Jay Chaudhry and has established itself as a leading player in the field of secure cloud transformation and internet security.

These three companies, Crowdstrike, Fortinet, and Zscaler, are at the forefront of the cybersecurity industry, offering innovative and effective solutions to protect organisations from the ever-evolving landscape of cyber threats. As cyberattacks become more sophisticated and widespread, the demand for their services is expected to remain strong, making them key players in the ongoing battle against cybercrime.

Should you wish to discuss this, or have questions on any other IDAD products, please do not hesitate to contact your sales manager.

Stock Note Risk Profile: There is a higher risk of large or total capital losses when Underlyings are individual Company Stocks rather than Stock Market Indices.