What is the case for structured products in a modern portfolio?

Cazenove Capital Portfolio Director Davydd Wynne and Carrie Devonshire an adviser with Athena Wealth Planning discuss the case for structured products in a modern portfolio in conversation with Julian Marr of Incisive Media.

30/11/2018

Authors

Davydd Wynne

The recent bout of market volatility is likely to have served as a reminder to financial advisers that they need to make use of every available weapon in their arsenal when it comes to generating returns and income for clients, as well as preserving their capital. One piece of potential firepower many advisers still tend to overlook, however, is the structured product – but are they missing a trick?

Any lingering mistrust can be traced back almost exactly 10 years to the start of the global financial crisis, when a number of big-name counterparties underpinning the products – most notably Lehman Brothers – defaulted and investors lost significant amounts of capital. Further shaking people’s faith in the sector, the FCA has not been shy to issue warnings over what it views as the dangers associated with structured products.

As we head into a new phase of the market cycle, however, with the central banks on either side of the Atlantic raising rates and unwinding the last decade’s unprecedented programme of quantitative easing, is it time to reconsider the case for structured products in investors’ portfolios? That is the key question this live Professional Adviser webinar – in association with Cazenove Capital – will look to answer.

The panel will consider how structured products have evolved over the last decade, the different types available and how they might best be used as part of a suitably diversified portfolio. In particular, our experts will focus on their potential advantages – not least in the context of a return of, as much as on, capital – and their associated risks and the need to carry out appropriate due diligence to ensure the right choice are made.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Davydd Wynne

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.