RBS said it expects the structured fund market to be a significant area of growth as it launched its first Ucits III-compliant capital-protected six-year close-ended fund for NatWest and RBS private banking clients. The bank has been looking to build a fund platform for some time and is expected to use it to launch more structured funds in the UK and the wider European market in the next six months.
"The launch of our first Ucits III structured fund is a significant development for our business,” London-based head of structured investor products Robert Begbie told SRP. “We have plans to expand distribution in UK and Europe, and in Asia via our product development team in Singapore. This fast-developing market is an area we believe plays strongly to RBS's structuring and derivative capability across a range of asset classes.”
This first UK-domiciled Ucits III fund returns the greater of 25% or 60% of the growth in the FTSE 100 Index over six years. The minimum return will not be paid should the FTSE have fallen by more than 50% over the investment period, though capital will be returned.
RBS recently made clear its intention to exploit growth potential in the Asian time zone, when it called the Asia-Pacific region the ‘most significant opportunity’ for the development of its structured products business. It hired a Singapore-based team from Schroders Asset Management led by Stanley Ng as head of structured investor product development and marketing.
The bank is also said to be speaking to distributors in the Nordic region about potential fund launches.
These products will be available shortly in Recent Additions (UK and Offshore, Private Banking & Institutional databases).
