Hard sell for guaranteed products

Professional Adviser
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Back in the week starting 29 July 1996 Investment Week was focusing on guaranteed stock market produ...

Back in the week starting 29 July 1996 Investment Week was focusing on guaranteed stock market products which contained high hidden charges built into their underlying derivatives structures. At a time when the world's major equity markets were looking increasingly volatile, these products were being sold ever more aggressively to the retail market. The bonds and funds effectively gave the consumer far less upside to the market than the derivatives contracts themselves provided, in some cases a difference of more than 10%. Much of the profit was taken by the investment banks which suppl...

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