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Structure struggle sees no solace for Quantum

Structured product provider Quantum Asset Management has temporarily pulled out of the market and cut its sales team after struggling to structure investments in the economic climate.

Chief executive Mark Mathias says the firm is not looking to issue any new products at present and does not see any attractive opportunities in the immediate future.

He says: “We are not seeing anything which is attractive to market and we are not in the market. With rates and volatility where they are, we cannot structure anything which we think is a great investment and which will sell.”

Quantum is a rebrand of Dawnay Day Quantum which split from Dawnay Day International last September following a management buy- out by Mathias from administrators.

After a number of redundancies in its salesforce, Mathias, portfolio manager Joel Amsellem and an office manager are now the only staff at the company.

There are an estimated 25-30 existing active structured plans which will continue to be administrated by plan manager Keydata until maturity. All plans are underwritten by Barclays and JP Morgan.

Truestone client director Simon Bullock says other small providers could face similar problems. He says: “In terms of structuring, I think they will struggle to come up with anything exciting.”

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