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Barclays’ Kitson wants structured tools for IFAs

Kitson: ‘Encourage use of products within advice matrix’
Kitson: ‘Encourage use of products within advice matrix’

Barclays Wealth Intermediaries third-party distribution director Roland Kitson has called for IFA portfolio planning tools to incorporate structured products more in their models.

Kitson said many advisers are forced to use structured products outside their clients’ model portfolio.

He said: “The problem is that a lot of the decision-making processes, particularly the computerised processes that throw out standardised portfolios based on models written by a certain fund manager or distributor, do not include structured products within their make-up so when an adviser uses them they are doing so outside the broader portfolio matrix and that cannot be right.

“What we need to do as an industry is encourage the use of products within that advice matrix so that when an adviser goes through the decision-tree process structured products are advised and not just sold on the side of the portfolio. It is a fundamental shift from where we are at the moment.”

Barclays Wealth managing director Colin Dickie said: “Wherever you may be advising a mutual fund, I want there to be a structured alternative.

We will migrate the product range in such a way that it mirrors the mutual fund range. It is hard to get there because the reality is that the FTSE products are the ones that sell within the UK.”

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  1. Chris Harrington 21st March 2010 at 7:42 pm

    The main reason IFAs just use FTSE linked products is that they are the only products provided. Occasionally we see something different, such as the Barclays emerging markets plan, but not very often. We also see some multi index plans where they are linked to, perhaps the FTSE and the S&P 500 but these are not ideal either as this does not fit cleanly into either the UK or US asset class.

    US equities, as an example, must form a part of most clients’ asset allocation plans so why is there not a US linked structured plan available? The same goes for Europe etc.

    We had been looking for a US linked plan to become available for many months (I accept Barclays had their US supertracker plan available for a short period) and we had to go down the route of asking a bank to build a bespoke plan for us because there simply wasn’t such a product available. Whilst this has worked very well for our existing clients, the issue is that there is no such plan available on an ongoing basis and so new clients we deal with will not be able to access it.

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