Hendersons is to make its first foray into the retail structured products market by the end of the y...
Hendersons is to make its first foray into the retail structured products market by the end of the year.
Managing director Simon Ellis said the group is discussing the form of the products with distributors and has yet to decide what securities or indices to base them on.
'We have spoken to a number of leading distributors of structured products to find out what sort of things they want us to make,' Ellis said. 'We will be responsive to what their marketplace wants at any one time.'
Hendersons already runs structured products for sister companies Pearl and NPI but the new products will mark its debut in the retail marketplace.
They will be formulated by head of structured products and derivatives Michael Chadney, who joined Hendersons from Close Brothers earlier this year.
Ellis said the products will offer conservative gains in order to maximise capital security.
'We don't want to go into the structured product market offering something that is 12% income as long as Saturn, Mars and Jupiter line up with the Europe stocks index,' he said.
'We would rather get something out that pays maybe 7% with capital protected, which we think is achievable and a far safer place to be.'
While this may limit the retail uptake of the products, Ellis said he is happier selling less of a successful product than more of an unsuccessful one.
SM&CR is the big one
To 'future-proof advice firms'
Latest news and analysis
Three years at Wells Fargo
Effective from 9 December 2019