View more on these topics

Bespoke suits a bounceback

Providers and advisers have tipped bespoke structured products for growth as investors seek out flexible products to capitalise on a market bounce.

Speaking at the Money Marketing structured products round table, Blue Sky Asset Management product development director Mark Dickson said recovery structures are an increasing trend among IFAs in the current economic climate.

He said: “They want to know what gives good access to a relatively steady to sharp correction in the market and are looking for a better balance between risk and return.”

Barclays Wealth director Colin Dickie said: “Appetite for risk is gone but investors are getting crunched at the deposit end with banks. At some point, they are going to have to take some risk and structured products are there to provide that solution.” Morgan Stanley executive director of UK structured solutions Marc Chamberlain said appetite for income is an overriding trend but recovery structures had become popular in the discretionary sector and fund management within long-only funds. He added: “You have had a reversion back to simplicity, especially in the retail space. People do not want anything non-FTSE and payoff has to be simple.”

Quantum Asset Management chief executive Mark Mathias said investors’ time horizons have changed and products which offer the possibility of early release of capital or income have become popular.

He also noted an increasing appetite for structures among discretionary managers in portfolio construction and said: “If the professionals are increasing their use of these things, logically it is telling you it is going to be sensible for investors.”

Helm Godfrey managing director Bruce Wilson said: “I am sure that bespoke products which design something very particular to what clients want are a good way to go, I see more of that happening.”


Price pressure

FSA chairman Lord Turner has said in his review that lenders will be forced to hold more capital in the future to avoid a repeat of the banking crisis. Some experts predict that consumers will bear the cost of this move through higher mortgage rates.

FTSE buoyed by M&S

The FTSE 100 opened 20 points higher today at 3,763 as equities rebounded from yesterday’s sell off.

Lincoln absorbs pledge cost

Lincoln Financial Group insists it has no plans to put up prices on the guarantees offered on its i2 Live product or reduce the maximum equity.

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm