Although most UK retail structured products are based on the FTSE 100 greater diversity can be achieved by looking to mixed baskets of indices or commodities, or even a house price index
The most striking aspect of the retail market for structured products is the dominance of the FTSE 100 as an underlying asset. Fully 70% of issues by number every year appear to be FTSE linked, according to data provided by structuredretailproducts.com, and it has been that way for several years. The FTSE is a clearly known quantity, which makes it easy to explain to investors. Furthermore, its usefulness as a diversifier for UK investors is actually increasing rather than decreasing, as the weight of truly global companies within the index, with earnings that are uncorrelated to the UK eco...
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