The UK Structured Products Association (UKSPA) has launched a free tool called Portfolio Optimiser that allows financial advisers and wealth managers to see how structured products can be used in an investment portfolio.
Backed by data from Future Value Consultants (FVC), it provides an independent assessment of how the vehicles can fit into an existing portfolio and impact the expected performance and risks.
The association said the tech will be the first time advisers will have the opportunity to assess allocation for the products.
It allows users to either create their own structured product for analysis or select a vehicle that is currently listed on FVC’s Structured Edge Research Service.
The tool will also generate a report of both historical stats and future predictions, comparing the original portfolio to the “modified” version.
Clive Moore, managing director of investment service IDAD, told International Adviser: “Structured products are widely used by professional investors in the UK, including discretionary portfolio managers, so it’s great to see the UKSPA promoting tools that encourage advisers to incorporate them more widely in clients’ investment portfolios.
“Returns available on corporate bond funds, which have traditionally been used to deliver lower-risk returns, are at all-time lows – sometimes below the costs of investing.
“Many of the alternatives available, like property and secured-lending funds, can suffer from illiquidity and valuation risks, which structured products and market-linked deposits don’t.”
Zak de Mariveles, chairman of UKPSA, said: “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.
“We hope it provides reassurance for those considering using structured products as a way to diversify and enhance investment portfolios.
“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.”