Traditional funds in the UK tend to be open ended and yet they form a minority of structured investments, which usually have a fixed term. Given that many wealth managers are comfortable with open ended products, platforms find them easier to accommodate and the regulations can be more flexible, is the structured investments industry missing an open goal?
Open ended funds account for £619 billion* of assets under management in the UK. Both Investec and Skandia have scored with open ended protected funds. With the new RDR regulations offering a more level playing field for structured investments, is there an opportunity for other providers to follow?
* Source: IMA Annual Survey Asset Management in the UK 2010-2011