Ask the Experts: Structured products and liquidity


Question: What about liquidity? One common risk associated with Structured Products is a relative lack of liquidity due to the highly customized nature of the investment - how can ETFNs counter act this concern and what do the experts suggest as alternative methods to combat such Investment issues?

Answer Gary Dale - Investec In terms of liquidity one general comment I would make is that although lack of liquidity is often cited as an issue, the majority of plans available in the market place do in fact offer liquidity. Whether deposit or MTN based, the provider should be in a position to offer redemption prices throughout the term. Structured Products are however designed to be held to term to benefit from the full pay-off profile and elements of capital protection however the average term is around 5 years which is no different to the length of time most investments should be ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes



Already a Professional Adviser member?


More on Structured Products

Exploring the options for downside protection in a bear market

Exploring the options for downside protection in a bear market

Making the case for diversification through structured products

David Wood
clock 04 January 2023 • 5 min read

Structured product returns fall in 2020 despite continued success

Almost three-quarters generated positive returns

David Brenchley
clock 26 January 2021 • 2 min read

Structured product performance analysis tool launched for advisers

Free for advisers

clock 02 March 2020 • 2 min read