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MM survey shows 79% of advisers more wary of structured products

Some 79 per cent of advisers are more wary about recommending structured products due to concern over Lehman-backed investments, according to a straw poll.

According to a survey of 163 advisers, only 21 per cent are not wary of recommending structured products in the wake of heightened concern about products financed and underwritten by Lehman Brothers.

Chelsea Financial Services head of investment products Matthew Woodbridge says: “This is not surprising. The precipice bond problems that occurred a few years ago encouraged advisers to become more aware of the market risk of products and I think the product providers reinforced this by the way they redesigned their products.

“In the background there has always been counterparty risk but it has taken an event such as Lehmans to bring that into sharp focus. Until the situation is sorted out, I can understand why some advisers would continue to be wary.”

Churchill Investments director Chris Gilchrist says the firm does not recommend structured products and has never found one which offers convincing “slam-dunk” value to the investor.

He says: “Providers constantly go on about how they are simple products which give naive investors an easy way into the stockmarket and once again we have a demonstration that they are not. You don’t get what they say on the tin and it is not surprising that a lot of people who were taken in by providers have decided to back off.”


Protection principles

Next year, April 5 will not only mark the end of the tax year and the start of a new cycle of financial planning but will also mark the last date that clients are able to register their pre-A-Day (pre-April 5, 2006) pension funds for enhanced or primary protection. Therefore, with the cut- off point to register for enhanced or primary protection looming, advisers must take action now if their clients are to benefit from these opportunities.

Multi faceted

Tony Yousefian, chief investment officer and founder of OPM Fund Management, which was started in 2003, manages a variety of multi-asset funds. Tony has had a first-class career, ending up as a director of Smith & Pinching Portfolio Management before founding OPM.

Thinc bins multi-tie arm

Axa-owned Thinc Group is to transfer its multi-tie national advisers to a whole of market proposition by the end of this year.


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