View more on these topics

Split view over risk assessment

Structured product companies are divided over the best indicator of risk for IFAs.

Blue Sky Asset Management product development director Mark Dickson said IFAs have to weigh up a combination of risk barometers, including credit ratings, credit default swap levels and political factors to take a personal view on counterparty credit strength as none can be relied on in isolation.

He said: “Credit ratings are never up to the minute and they are not intended to be. CDS are potentially a real-time indicator of relative credit strength between different potential counterparties but the market is not well regulated and not always heavily traded. Ultimately, they have to take a view.”

But Barclays Wealth director Colin Dickie said it is the provider’s job to help IFAs to understand the risks. He said: “I am keen to disclose particular stress test results to make sure IFAs understand the risks and potential outcomes of the product.”

Keydata Investment Services director of sales and str- ategy Mark Owen said IFAs need to consider the risk of a product in the context of a client’s whole portfolio.

“A client does not put all their money in one structured product with one bank.”

Recommended

India budget and the liquidity supercycle

Kunal Desai, manager of the Neptune India Fund, comments on how India’s 2017 budget will impact the Indian economy and equity market. Read article here: Important Information – for Investment Professionals only. Not for Retail Clients.Investment risksThe Neptune India Fund may have a high volatility rating and past performance is not a guide to future […]

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