Income products key for 2007

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STRUCTURED product expert Ian Lowes has predicted 2007 will finally see providers trying to create income-producing vehicles for investors.

Until now, Lowes, who is managing director of Lowes Financial Management, said it has been difficult to create structured products which generate regular income for investors. This is because they require an environment with increased volatility and a rise in interest rates. However, Lowes said many providers will now attempt to break into a market which has long been perceived as the “holy grail”. He explained that an example of this was the recent launch of an income contract from Premier which is based on divergent strategies relating to stocks in the Global Titans Index. Wes...

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