UK structured product sales heading for annual record
Sales of structured products to UK retail investors hit £3.7bn in the first six months of the year, 15% up on last year and on target to reach a record level of £8bn by the end of the year, according to Blue Sky Asset Management, a structured products specialist.
The growth in structured product sales came against a backdrop of outflows from mutual funds.
UK-domiciled funds saw £27.5bn in redemptions this year to the end of May, according to the UK's Investment Management Association.
Chris Taylor, chief executive of Blue Sky Asset Management, said: "In the current economic and investment environment, investors are understandably and correctly seeking to reduce exposure to risk – especially unnecessary market risk – whilst accessing enhanced future investment returns. By design, innovative structured investments can deliver this precisely whilst, by definition, most traditional UK mutual funds simply cannot, and subsequently many fail to meet the interests and needs of investors today. Investors are voting with their feet – and their funds.”
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