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Delight as Mattioli Woods’ Structured Products Fund passes through £200m landmark

Delight as Mattioli Woods’ Structured Products Fund passes through £200m landmark

A fund set up by Mattioli Woods just 18 months ago now has more than £200 million of assets under management (AUM), the company revealed today.

The monetary milestone was a “significant endorsement” of its award-winning Structured Products Fund, the firm said in a statement.

The fund – recently named ‘Retail Investment Product of the Year’ – was launched in November 2016.

Its pioneering approach makes it as easy for clients to buy and sell structured products as ordinary shares.

Other key features include:

GREATER SECURITY
The assets of the fund are secured by government bonds. Previously, investors were fully exposed to the bank providing the structured product. If the bank became insolvent, all the investor's money could be lost.

IMPROVED INVESTMENT PROCESS
The old structured product arrangement meant investors could only buy structured products during a sales period (typically six to eight weeks before launch). The new fund is continuously available.

INSTANT DIVERSIFICATION
The fund offers immediate access to a diversified portfolio of structured products. In the past, the same portfolio would have taken more than a year to put together.

HIGHER POTENTIAL RETURNS
Reduced costs achieved through the fund could potentially yield improved outcomes for investors

Mark Fuller, Mattioli Woods’ head of structured products, said today: “The success of the fund has again exceeded our expectations.

“We are very pleased that the £200 million of Assets Under Management ( AUM) is a combination of new money to Mattioli Woods and money from maturing structured product plans.

“We feel the clear message from clients is that they recognise that structured products are an attractive asset class and, in our opinion, that the fund is the best way to invest in structured products.”

Mr Fuller said that while fund advisors were “delighted” at the amount invested, they remained focussed on volatility and return objectives to deliver value to clients “who always remain at the centre of our proposition.”

“The Risk.net award for “Retail Investment Product of the Year” was a validation from the industry. Clients trusting us with £200 million of their cash is a far more significant endorsement,” he added.

WHAT ARE STRUCTURED PRODUCTS?

Structured products are generally a type of fixed-term investment where the amount you earn depends on the performance of a specific market (such as the S & P 500 index) or specific assets (such as shares in individual companies).

They offer the potential to earn attractive and clearly defined returns.

They are bespoke investment vehicles, either tailored to meet the aims of an individual, or intended for a general retail offering, but with a risk/reward profile designed to achieve a specific set of objectives.

Typically, these objectives will combine an element of capital protection with a degree of participation in the return from an underlying asset.

*As with investments in general, past performance is not an indication of future returns. Investments and the income from them can go down as well as up and you may not get back the original amount invested.