The aims of the white paper
The white paper aims to cogently articulate why independent professional advisers who are not currently using structured products or not using them widely should take a fresh and objective look at them today.
The white paper is particularly aimed at professional advisers who are not currently using structured products – but with plenty to offer advisers who are already using structured products successfully.
The different sections of the white paper aim to:
- Highlight the significant and important USPs of structured products:
- also explaining their risks and limitations.
- Consider how the views of professional advisers who are not currently using structured products may have developed over the years:
- including drawing attention to potential gaps in working knowledge and / or outdated views, as well as some reverberating misconceptions and myths.
- Explain how the UK retail structured products sector has developed, materially changed and positively advanced over the last 10+ years:
- including important regulatory changes.
- Present long term, granular, comprehensive and incontrovertible facts about the performance of UK retail structured products:
- which: highlight the USPs of structured products; evidence the efficacy of structured products; and shine a light on the potential merits of including structured products in diversified portfolios;
- the sector-wide data / facts cover c.5,000 UK retail structured products that have been launched and matured, that were distributed via independent professional advisers, over the last 20 years or so.
- Draw attention to the importance of thinking about the challenging economic backdrop and investment environment that we are in, including the possibility / risk that we may be in a long term, low returns environment, and the challenges that this may present for portfolio construction:
- particularly if portfolio diversification thinking is limited to a binary consideration of just active and passive funds, and asset class and geography.
- Consider what may reasonably be expected in terms of ‘alpha’ from active funds and / or ‘beta’ from passive funds and highlight the merits of structured products, which offer the potential for ‘alpha by contract’:
- in ways and with risk / return profiles that neither active nor passive funds offer, that could add material value within diversified portfolios, particularly in low to medium return, no return and / or moderately falling market environments.
- Assert that independent professional advisers may do their clients a disservice if they do not objectively consider and use structured products, when it is appropriate and suitable to do so:
- and suggest that professional advisers who are not currently using structured products may need to reflect on why they are not, including objectively considering if any long-standing and entrenched views, including any cognitive biases, may need to be addressed.
Our aim is to help advance and strengthen professional adviser working knowledge and understanding of structured products and the value that can be gained from client-centric, best practice use of best of breed structured products.
We hope that our white paper and our campaign will be instrumental in taking the benefits of best of breed structured products to a wider audience of professional advisers, for the benefit of their clients.
WHITE PAPER: ‘STRUCTURED PRODUCTS: USPs; EVIDENCE; NEED; & COGNITIVE BIASES!’ |
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WHITE PAPER: MONEYFACTS Q&A WITH ANTHONY VILLIS, MD OF FIRST WEALTH |
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WHITE PAPER: ONLINE TEST (REQUIRED FOR CPD) |
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