View more on these topics

Skandia looking at bringing South Africa guarantees to the UK

Skandia Investment Group is considering launching guaranteed products.

In his first interview since taking over from Jamie MacLeod as SIG chief executive in September, Nils Bolmstrand says the firm is looking very closely at the South African market to see whether guaranteed products could be imported to the UK.

He says: “The way Old Mutual works with guaranteed products in South Africa is of interest to us. We are looking at what we could bring to the UK market in terms of guarantees and alternative guaranteed products that differ to what exists in the UK market.”

He says the development of transparent guaranteed investment products help clients understand risks and rewards at the same time. He says: “I do not think anyone has found an upside and downside solution that is easy to understand for the client while giving them true protection. That is the big challenge.”

Baronworth Investment Services director Colin Jackson says any products with genuine guarantees will interest advisers. He says: “In this climate, truly guaranteed products are much needed, more than structured products that are merely protected. A lot of our clients ask for guaranteed products that ensure, come what may, they will get their money back.”

Dennehy Weller managing director Brian Dennehy says the UK has a lack of guaranteed products because the manufactur-ing cost is too high to generate a good profit. He says: “Everyone would want a true guaranteed product with the right returns – it is a no-brainer. The problem is any products that can offer a real guarantee and potential for returns are either too complex or the guarantee lacks quality. I am not sure why South Africa would be different as guarantee costs are the same the world over.”

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