Investors seeking refuge in structured products

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Nervous UK investors are piling into structured products, in an effort to avoid the kinds of losses many sustained on the stock and mutual funds markets last year.

So say IFAs and structured products specialists, who report their clients are particularly interested in the capital preservation features many structured products offer, even though the upside potential may be less than for conventional investments held for five years or longer – the time period investors are obliged to hold most structured products. Gross sales of structured products thus far this year in the UK have reached £5.1bn, compared with £6.6bn in all of 2007, according to Robert Benson, managing director of Arete Consulting, which owns structured products data websites SRPAdvi...

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