Taking a punt?

Professional Adviser
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Much of the adviser community remains wary of structured products, often seeing them as complex vehicles that gamble on indices not losing a set percentage over the 5-6 year investment period. David Burrows looks at how these products are structured, the criticisms that advisers raise, providers' response to those criticisms and how the new wave of products can fit within a client's portfolio.

It has not been a pleasant spectacle to watch global stock markets over the last year or so. After climbing above 6,750 in July 2007, the FTSE 100 index has since slumped to its present position below 5,300 in July 2008. No doubt it will continue to experience short term rallies but in the main the trend is downwards and perhaps more importantly investor sentiment is positively subterranean. The recent volatility in the markets, not surprisingly, has led investors to look at more cautious investments and more particularly investments that offer quantifiable safeguards in regard to return...

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