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Blue Sky forecasts structured product annual sales to reach £84bn by 2020

Blue Sky Asset Management says UK structured product annual sales could reach £84bn by 2020. 

According to analysis from the structured product provider, retail sales of structured products grew 47 per cent last year to £13.3bn and total assets under management now stand at £39.4bn excluding open end insurance based funds as at December 31 2009, compared with £32.3bn in 2008 and £27.7bn in 2007.

This represents average growth of 19.3 per cent a year. Based on the same level of growth over the next decade Blue Sky forecasts that total UK retail structured products assets under management will exceed £229bn by 2020.

It says 2010 has already started strongly, with 183 products and sales of £2.7bn and expects annual sales to exceed £84bn by 2020.

Chief executive Chris Taylor says: “2009 witnessed an intense inspection of the UK’s structured product industry, with the FSA’s regulatory review placing providers, products and the advisory process under scrutiny. However, the industry sales data for the final year of the last decade clearly highlights the fact that ever increasing adviser and investor demand for investments that deliver greater investment control, that  mitigate the uncertainties and challenges of prevailing market conditions through pre-defined risk and returns, is leading to increased awareness and use of structured products within portfolios.’’

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