View more on these topics

Cazenove adds structured plan to diversity deal

Cazenove Capital Management has added a structured product to its multi-manager diversity plan as it looks to capitalise on the alternatives’ sector in the coming year.

The BNP Paribas six-year autocall pays an annualised coupon of 18.4 per cent on the plan if the FTSE 100 index does not finish below its strike price of 3,861 at its first year anniversary.

If the index finishes lower but not by more than 5 per cent, the product rolls into the second year. If the FTSE then finishes above its original strike price at the plan’s second-year anniversary, the coupon returns two times 18.4 per cent.

Head of multi-manager Marcus Brookes says: “October was a truly dreadful month for all asset classes but even this presents some opportunities. Increased volatility in the markets meant the coupon, which had been trading at around 12 per cent, shot up to 18.4 per cent and that is an except- ional coupon to be able to get.”

The product provides 100 per cent capital protection unless the FTSE 100 falls by more than 50 per cent, when capital is lost on a 1:1 basis.

Brookes says structured products would not be suitable for either of Cazenove’s index-benchmarked funds, the multi-manager UK growth fund and multi-manager global ex UK fund, as they both have a defined equity focus but it is something they are looking at “very closely” for the multi-mana- ger managed equity fund.

He says: “Buying traditional equities and bonds is probably not the best area for clients over the next year although corporate debt could be a very good opportunity. Government debt could be disastrous, equities could be okay next year but they do not look like they will roar away so with that, backdrop alternative investments such as structured products could be another opportunity to make money.”

Recommended

FTSE flattens after PBR frenzy

The FTSE 100 opened 20 points lower today and remained flat in morning trades after posting its biggest ever one day percentage rise yesterday following the pre-Budget report and rescue plan of ailing US bank Citigroup.

We need a savings revolution

This manifesto calls for a national savings strategy. If British society is to be financially self-sufficient and confident of its future, the attitudes and savings habits of the nation must change.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com