Structured Product  

DFM launches structured product model portfolios

DFM launches structured product model portfolios

P1 Investment Management has unveiled a range of model portfolios which aim to give investors an efficient way to invest in structured products.

The new service uses a portfolio approach, as opposed to the traditional ad hoc selection of individual structured notes.

Portfolios are managed on a discretionary basis and are regularly monitored and rebalanced.  

James Priday, managing director of P1 Investment Management, said: “The demand for structured products has increased significantly over the past decade and this new proposition has already been well received by advisers and their clients. 

“We have developed this service to fill a real gap in the market for a portfolio approach to structured product investing.”

In December, Investec said the introduction of packaged retail and insurance-based investment products (Priips) will make structured products more attractive because advisers will be able to compare the risks and costs to other products more easily.

Earlier this month, Investec Wealth & Investment announced the launch of a structured product service which offers investors access to two mandates.

P1’s service has an initial fee of 0.75 per cent for account values up to £1m, and charges 0.25 per cent thereafter.

The newly-established DFM, which launched in February last year, has recently been added to a number of wrap platforms, including the likes of Novia and Royal London-owned Ascentric.  

The managed service has been created in conjunction with structured product company, Cube Investing, which has provided research and analysis to help build the portfolios. 

David Stuff, chief executive of Cube Investing, said: “Structured investments have offered investors good steady returns in the past and we think that this will continue to be the case in the future.” 

katherine.denham@ft.com