There are many ways to start a career in structured products, and a variety of different views of what are good products. In a series of interviews, SRP asks market practitioners to reveal their thoughts about the market and the path they have taken to become part of it. Bart Van Leemput, head of product & portfolio development, KBC Asset Management, answers the questions.

What sells better in the Belgian market, protected or non-protected products?
Although protected products were the stronghold in het Belgian market for many years, total portfolio solutions have gained ground over the past year at the expense of protected products.  Nevertheless, due to its asymmetric risk/return profile, structured products have their place in a well-diversified portfolio, and will remain important in the years to come.

What are the prospects in your market for the next 12 months?
In my opinion, the move to total portfolio solutions and discretionary managed accounts will continue in the year to come.

What was your first job?
I started my career in 1999 as a savings & investment adviser in a retail branch of KBC Bank.

What subject did you study in higher education?
I hold a Master degree in Applied Economic Sciences.

Are structured products complex investments?
The majority of protected products offered to retail in Belgium today, are very straightforward. Nevertheless, a lot of attention should be paid to training client advisors and clients on the product characteristics and how they behave between start and maturity date.

What is the main benefit of buying a structured product?
Structured products offer an asymmetric risk/return profile (e.g. via lookback-features, airbags, capital protection, etc.), and as such, provide a diversification with regard to open ended equity and bond funds.  Next to that, they also offer an easy way to get exposure on investment themes or accents with added features that can't be replicated with classic open ended funds.

Do you buy structured products, if so, which type do you prefer?
Yes, especially those products one cannot replicate themselves, such as products that have a specific interesting investment theme as an underlying with some kind of downside protection at maturity.

Bicycle or taxi?
Bicycle it is: never waste workout time.

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