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Investec revives its plans to develop structured fund range

Investec says the launch of a structured fund business is still on the agenda after plans were put on hold last year.

The firm will be developing a structured fund business alongside its structured product range over the coming months. It sta- ted its intention to launch the business last year but head of intermediary sales for derivatives and structured products Gary Dale says that plans took a back seat as the focus shifted to other parts of the retail business.

He says: “It is still very much on the agenda. It is early days, we are exploring different ways of providing structured fund business, possibly by using third-party Ucits or building it internally. We are undecided as to how we take it forward but it is a business we will be involved in over the coming months.”

Dale believes it is possible to structure open-ended funds in a more efficient way for IFAs without buying the underlying assets.

He says: “After the retail distribution review, assuming it takes hold, it will be 100 per cent transparency, so in terms of fees and income for the wealth management area, they are going to start buying these sorts of pay-off profiles in the most efficient way possible.”

Last week, Morgan Stanley said it is looking to launch its first structured product within an Oeic and last year BNP Paribas launched a product with this set-up.

Investment Management Association product regula- tion adviser Craig Hall says: “If investors are going into structured products and they are unaware of the risks, then we would welcome them doing it through an Oeic where there are strict governance procedures and the risks are transparent.”

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