Increased platform access will deliver level playing field for structured investments, says SPwrap.com
The evolution of the ways in which structured products can be purchased and held will revolutionise the sector and help bring them into line with other investments, seeing them become more accessible and better understood, predicts SPwrap.com, the dedicated structured product platform.
On the day SPwrap.com officially opened its doors to the whole financial adviser market, Mark James, head of distribution for SPwrap.com, said the opening up of distribution platforms to structured products fundamentally changes the market, making it easier for advisers to transact business and to monitor investor portfolios.
SPwrap.com helps advisers to construct and manage their clients’ structured product portfolios all within an RDR-compliant framework. The functionality of the platform includes easier access to full up-to-date details of clients’ structured product portfolios, a comprehensive notification system providing information updates on key portfolio events, potential kick-out points for autocall products and forthcoming maturity signposts, as well as valuations online 24/7.
Cofunds has already added a link to SPwrap.com, providing access to the SPwrap service via the Products and Services section of its adviser-facing website.
James says access to structured products had been limited on some of the independent wraps and not all platforms have made them available to investors. Where they have been available, the investment information available is usually very basic and adds little value for the client or their adviser.
“However, with structured products appearing on many more advisers’ radars, this situation is set to change rapidly,” says James. “The introduction of SPwrap.com, as a dedicated structured product platform, will help drive that, making it easier for an adviser to invest customers in structured investments and to provide detailed, timely information to their customers.”
“Having such easy access to the tools that SPwrap.com offers, much as they currently have with mutual funds, will greatly enhance an adviser’s client-facing proposition and reinforce the position of structured products as a much more easily accessible and understood investment type,” adds James.
Currently, investors looking to generate investment returns are faced with an environment where stockmarkets are generally tracking sideways and interest rates remain at all-time lows. With the US, Europe and other economic blocks continuing to struggle with recessions following the global financial crisis, it is likely this situation will continue for a while yet.
“In this ongoing scenario, investors are looking for investments that can achieve attractive returns despite the current market constraints and can diversify risk and protect capital against the threat of downturns. We anticipate that these choices will almost certainly include structured products,” says James. “Just a few years ago advisers were buying mutual funds direct from the fund houses. Few advisers would think of investing all clients’ funds like that today and with the development of SPwrap the same ease of access can now be achieved for structured products.
“Extending the ability to hold, purchase and monitor structured products on a platform will help level the playing field between mutual funds and structured products and, with empirical evidence indicating growing interest in structured products among financial advisers, this can only see the structured products market grow sizeably in the next few years, benefiting advisers and investors alike.”
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