Falling interest rates have increased the appeal of income-producing products while falling stockmarkets have boosted the attractions of downside protection. This combination has led to a re-emergence in the popularity of structured products but overhanging this trend is the spectre of the late 1990s and precipice bonds.
Enhanced annuity sales rose by 35 per cent to break through the 1bn barrier last year.Consultancy Watson Wyatt says sales have increased by 161 per cent since 2001 and it believes the trend will continue.It estimates that up to 40 per cent of people taking out an annuity may be entitled to enhanced rates.Enhanced annuities […]
Societe Generale has launched a steeply discounted £4.1bn share sale in a bid to cover the £3.7bn loss made by rogue trader Jerome Kerviel.The bank is offering a one-for-four rights issue at £35.50 a share, a discount of almost 40 per cent on Friday’s closing price. The rights issue is being underwritten by JP Morgan […]
New Star’s multi-manager team are attributing the outperformance of their active portfolio to its ability to invest in a range of asset classes and markets while measuring downside risk in every position it takes.
AlphaSimplex Group believes that the most robust investment products are those that adapt to changing market conditions. Alex Healey, portfolio manager of the ASG Managed Futures Fund, talks about how holding “long” and “short” positions in alternative investments, to match market trends, can create opportunities in both up and down markets.
Embattled asset manager GAM has announced a “comprehensive restructuring programme” this morning in the wake of poor anticipated results. The manager hit headlines in August when it was forced to liquidate the fund range of investment director Tim Haywood after an internal investigation uncovered issues with his risk management procedures and record keeping. This morning, […]
Next year is set to be one of challenge and change for the advice profession, but also one of opportunity, as the UK plots an uncharted journey outside the economic boundaries of the EU and planning businesses continue to adapt to evolving regulation. The past 12 months have seen advisers work to meet new European […]
The FCA has today proposed changes that would help unlock patient capital – investment seeking long-term returns, such as venture capital or infrastructure – through unit-linked funds to retail investors. The regulator has also published a discussion paper on the effect of the existing UK framework on investments in patient capital. As part of this year’s budget, chancellor […]