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.
Chris Taylor, global head of structured products for Alpha Structured Products answers the questions.
What sells better, protected or non-protected products?
In the prolonged 'everything lower and slower for longer' environment we've all become accustomed to, most advisers/investors have come to accept that accepting sensible capital-at-risk strategies is basically necessary if attractive potential returns are wanted. When pricing improves both will see increased sales.
What are the prospects in your market for the next 12 months?
Improving, generally, albeit marginally and slowly. But slowly but surely the UK professional adviser audience seems to be recognising the progress made by the sector, strong performance and the efficacy of structured products to add value in portfolios.
What was your first job?
Industry-wise, private client adviser. Non-industry-wise, working on a farm (grew up on one).
What subject did you study in higher education?
Finance
Are structured products complex investments?
Absolutely not. The label's so misguided and misguiding.
What is the main benefit of buying a structured product?
Increased likelihood of positive returns being generated, decreased likelihood of losses being experienced, no explicit charges impacting, and all arranged 'by contract/legal obligation (so credit risk instead of process/fund management risk)
Do you buy structured products, if so, which type do you prefer?
Yes. Kickouts, supertrackers.
Which is the best structured products market?
The UK's generally now very advanced, in terms of best practise (poster child of tightening up a sector?)
What's the best structured product you have ever seen?
It's on a need to know basis - could tell you, but then I'd have to kill you! I favour the lower risk of loss/more certainty of return strategies, generally.
Bicycle or taxi?
Bike for health and fun. Taxi for business.
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