Alaric Gordon, chief executive officer of Mercater Capital Management, is concerned that structured products and, more particularly the marketing of them, seem to suggest that the investor can have the reward without the risk.
Given recent market conditions, it is perhaps not surprising to see a resurgence in both the marketing and use of the structured product. Varying market conditions will always lead to surges (and declines) in asset and product types which, for a limited period of time, become predominant or otherwise as investors seek to achieve the nirvana of guaranteeing money is not lost. But, given the basic tenets of investment management theory, is that nirvana really achievable? Are guaranteed/structured products really appropriate for retail investors, who generally buy into them out of fear and ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
