With political uncertainty impacting investor confidence, Structured Products can offer both a port in the storm and greater returns in times of market volatility.
No one knows where Britain will be in the next six months’ time. Probably still somewhere in the North Atlantic is as close as we can get, but our relationship with Europe in respect of political distance is still very much up in the air.
European indices reflect a period of turbulence and in the case of many investments this volatility will have had a negative impact yet the returns offered on issues of Structured Products.
In recent months have outmatched those of any other point in the last twelve months. It is important to acknowledge the flip side of the volatility coin.
That some current investors in growth or kick-out products may find their returns and or opportunities for early maturity negatively affected. Albeit some comfort can be gained from the news that the FTSE 100 would need to fall another 40% before triggering losses on linked plans.
Christmas 2018 could turn out to be quite the gift, structured product wise, if not Brexit-wise.
Wealth Management firms that are pursuing knowledge, partnerships and distribution for Structured Products can achieve the utmost possibilities for their clients.
Disclosure of Virobel interests
The provider’s charges/fees are built into the terms of the investment – Virobel has a commercial interest in such products distributed to qualified investors as a result of its development and promotion. Rebates can be provided to clients upon requests.