Funds and SMAs are increasingly gaining traction with investors as they offer a diversified portfolio across risk, underlyings and issuers.
Individual structured products – known as notes or certificates of deposits (CDs) in the US, plans and deposits in the UK and certificates in much of Europe – continue to be popular with increased sales volumes and issuance numbers year on year. There are many reasons for this popularity, including a desire to manage risk, the appeal of defined returns such as yield or growth targets, strong risk-adjusted performance and an emphasis on volatility reduction and capital protection.