Diversify with structured products and reduce risk

Structured products

Structured products are now being linked to income-producing asset classes such as commodities, currency or even equity, mitigating capital erosion and benefiting from overlooked assets

The traditional approach to building a portfolio which is capable of generating income for clients is to seek an asset class which characterises a risk-free benchmark and then to seek additional alpha return over and above this benchmark. The additional alpha is sought by introducing market beta or risk. The objective of any investment strategy is to blend these two components to bring about as much return as possible while importing as little risk as possible into the equation. The above may sound simplistic, but when you consider that there is no free lunch outside of diversification wit...