A volatile stockmarket and low interest rates will lead to a boom in structured products next year, administrator Opal says.
The firm claims it has been approached by a large number of companies looking for advice on entering the market, due to the poor returns available from other forms of investment.
Investment providers are targeting savers receiving poor returns in today's low interest rate environment, and hope to tempt them with structured income products, the firm says.
"A low interest rate environment, coupled with volatility in the equities and foreign exchange markets makes structured products more attractive. As a result we anticipate some major names launching new plans in 2009," says managing director Tony Collins.
Opal says many firms will look to offer clear product objectives and greater transparency compared with existing products to ensure investors have a greater understanding of the products available.
Products that can mitigate tax liabilities, and those tailored to the needs of specific customer bases are also likely to be a feature of the market in 2009 as competition hots up, Opal says.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress