Glossary - T

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.

Target Return

A product whereby the product matures early if the sum of the coupons reaches a pre-defined level.

Tax status

The tax treatment of the product's return if known and if held directly outside of a tax free wrapper. Either income tax or capital gains tax.


The term of a structured product is the name given to the duration of the investment. Structured products typically have fixed terms between three and six years but can be both shorter and longer.


A TESSA is a Tax Exempt Special Savings Account. This is a tax-free savings account that was offered to retail investors in the UK. It provided a tax-free return as long as it was kept for five years. The account is no longer available, but has been replaced by the Individual Savings Account (ISA).

For investors with a TESSA that is maturing there is the option to roll over their original investment into a TESSA only ISA (TOISA).

Third Party

Any company involved in structuring or distributing the product (if different from the provider of the product), e.g. an asset manager or a white labeler.


A deposit account

Time value

This is a term used when describing the premium of an option. The time value of an option is that element of the option’s premium that represents the difference between the option’s intrinsic value and the premium.

So, for example, let us assume that HSBC shares were currently trading at a level of 750p per share. A call option on HSBC with a strike price of 700p per share would have an intrinsic value of 50p per share. If the actual premium for the option were 75p per share then the time value would be 25p per share.

The value of an option i.e. its premium, is always equal to its time value plus its intrinsic value.


This is a TESSA only ISA, see TESSA and Individual Savings Account (ISA).

Tracker product

See Airbag, Protected Tracker and Super Tracker products.

Tranche product

Most structured products are tranche products, meaning that they are only available for a limited period. This period, which is usually around 4 to 8 weeks, is called the offer period and is the period during which the product is available for investment. Structured products that accept investments for an unlimited period are called continuous products. Do note that "Leverage" and "Flow & Others" products are not considered as being "Tranche" or "Continuous" in our "Product Style" categorisation.


A series of returns attributed over several sub-periods, each return being subject to a set increase (if a condition is met) or decrease (if a condition is not met) compared to the return attributed in the previous sub-period.