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?
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 held for in any case. Liquidity is nonetheless an important feature of any sensible investment plan and we recognise this at Investec Structured Products. We offer daily liquidity on all of our Structured Products and indicative valuations are available from our website www.investecstructuredproducts.com.
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