Deconstructing structured products

capital protected vehicles

With several protected products on the market, advisers should consider desired level of risk, preferred asset mix, optimum term and desired access to capital as key issues

Stock market volatility over the past five to six years has resulted in the emergence of a more cautious type of investor who is looking for ways to gain access to the stock market without risk to capital. In this climate finding a home for investments which takes full advantage of any market upturns but protect investors from potential downturns is difficult. Advisers have been fully aware of this dilemma and the evolution of products such as capital guaranteed and capital protected structures has enabled them to meet the needs of these more cautious clients. Historically, guaranteed...