Structured product design company Investment Design & Distribution (IDAD) and Compass Global Wealth have added two new share classes for the Structured Product Fund, a product designed for investors wanting medium to long term capital growth and happy with a moderate level of risk that primarily invests in structured products.

Andy Gibson, Compass Global Wealth director said that the Structured Product Fund was launched to market in February 2014 solely with a GBP share class and that in the past 18 months the firm has seen significant demand from advisers for Euro and US Dollar Share Classes.

“With advisers and investors naturally looking to invest in the base currency of the investors’ country of residence, the addition of these two new share classes has, we believe, further widened the appeal of The Structured Product Fund,” he said. “The new Euro share class is doubly attractive to investors following the European Central Bank’s decision to cut Euro interest rates from 0.25% to 0.15% last month (June 2014).”

Gibson also said that the Structured Product Fund was designed to take advantage of opportunities presented by structured products in both the primary and secondary markets.

“Interest rates are a key driver in establishing the potential returns on structured products, and the rate cut has inevitably led to an increasingly difficult market for new products denominated in the Euro,” added Gibson. “A key appeal of The Structured Product Fund is its ability to access both new products (“primary issuance”) and also those already in existence (“secondary market“).”

Gibson said that Compass Global Wealth will be looking for opportunities to take good value positions in the latter as subscriptions are received.

The fund aims to achieve returns of between 5% and 15% pa and will limit exposure to no more than 10% for each underlying counterparty.

Investors can access the fund via their financial advisers with a minimum investment of just £1,000 / $1,000 / €1,000.

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