Investor appetite for structured products shows no signs of slowing with Skandia noting a 152% jump in inflows to its Protected Portfolio Investment (PPI) fund in Q1 this year.
Structured products have increased in popularity since market turbulence began last summer, with advisers looking to balance the nervous client’s loss threshold with expectations for gains.
Skandia says its protected portfolio investments are structured to maximise the opportunities for growth alongside security for the capital, using actively managed funds rather than passive indices.
It believes investors will see the benefit of the growth focus when market conditions start to improve.
“The key principle of any investment strategy is understanding the client’s attitude to risk and for some clients, an investment that allows them to enjoy growth should markets rise with a safety net of up to 100% capital protection at the end of the investment term should markets fall, suits their risk needs,” Skandia investment marketing head Graham Bentley says.
“The recent market volatility is clearly making the idea of protecting their initial investment even more appealing to many investors and, as a result, over the last quarter we have seen significant interested in our structured products.”IFAonline
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