UKSPA launches free portfolio analysis tool
In an industry first, the UK Structured Products Association (UKSPA) has launched Portfolio Optimiser – a free tool that allows advisers and wealth managers to see how structured products can complement and enhance a wider investment portfolio.
Backed by robust data from Future Value Consultants (FVC), Portfolio Optimiser provides an independent and objective assessment of how structured products can fit seamlessly into an existing portfolio and impact the expected performance and risks.
While many applications exist to analyse portfolios made up of funds and ETFs, Portfolio Optimiser is the first opportunity for users to allocate to structured products within a model portfolio framework.
Zak de Mariveles, Chairman of the UK Structured Products Association, says: “Investing without structured products is like playing a team with one man down – it’s harder to compete if key players are missing. We have designed Portfolio Optimiser as an easy-to-use and effective way to see how structured products can be taken off the bench to help optimise a portfolio line up.
“Portfolio Optimiser offers independently verified data for all advisers and wealth managers to use in order to assess the impact structured products can have on any portfolio’s expected risks and returns. We hope it provides reassurance for those considering using structured products as a way to diversify and enhance investment portfolios.”
Portfolio Optimiser allows users to either create their own structured product for analysis, or select a product that is currently listed on FVC’s Structured Edge Research Service. It also offers great flexibility when creating a portfolio, offering a number of pre-built model portfolios or the chance to build a custom portfolio from the comprehensive list of ETFs and funds across all asset classes and IA (Investment Association) sectors.
Once the user has decided how much of the portfolio to allocate to the structured product, Portfolio Optimiser generates a detailed report of both historical and forward-looking analysis, comparing the original portfolio to the ‘modified’ version (i.e. with the structured product included).
De Mariveles adds: “Over the last 10 years structured products have been outperforming many funds, and we are excited to provide for the first time a tool to the adviser and wealth management market that will help them better understand how to optimise their allocation across a clients’ overall portfolio.”