Structured product investment sales rose 25% to £9.68bn in 2008, as the sector continued to establish itself as a provider of mainstream wealth management solutions, according to new analysis from Blue Sky Asset Management (BSAM).
The rise from £7.17bn in 2007 confirms predictions by BSAM last year of total retail sales of between £8bn and £10bn in 2008.
BSAM's analysis reveals the sales increase was driven by a combination of a growing numbers of active providers in the UK and more product issuance.
The total number of structured retail products issued in 2008 rose 20% to 985, up from 812 in 2007. Meanwhile, there were 97 issuers operating in the market during the year - up from 87 in 2007.
BSAM suggests the record year was driven by client demand, as investors and wealth managers increasingly seek investment options that can combat low interest rates and stock market volatility.
The company also believes client led demand will continue to drive growth in the market - resulting in retail sales exceeding £10bn for the first time in 2009 - despite the challenging economic conditions.
"The record sales volume in 2008 demonstrates beyond doubt that structured investments are established as mainstream wealth management solutions in the UK," says BSAM chief executive Chris Taylor.
"Cash will not be a safe haven in 2008, for anyone that relies upon it for income, and traditional equity funds are an uncomfortable proposition for many investors in the current market environment. More than ever, therefore, intelligent structured investments can positively position themselves as client centric and investment led solutions in 2009."
Contact: Charlotte Banks, Tel: 020 7484 9943, e-mail: [email protected]IFAonline
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