James is a Portfolio Manager at Steyn Capital Management, responsible for both long and short positions in our South African and Global Emerging Markets strategies.
The role of structured products in institutional investments is growing, but these investors need to consider all the usual risks and benefits including liquidity and compliance with regulations such as Regulation 28 of the Pension Funds Act.
In evaluating structured products, all the risk factors need to be balanced against the benefits to ensure that the risks don’t undermine the benefits.
When recommending structured products, advisors need to ensure risk and return profiles are suitable for investors. Full disclosure also requires transparency about the costs of investing. But risk-return profiles in structured products sometimes depend on the interplay of guarantees, conditions and pay-offs. Embedded costs are difficult to evaluate but listed products should be disclosing these.
Alexforbes were honoured at the Raging Bull Awards with two prestigious awards that highlighted the firms investment achievements and long-term performance.
There is a limited range of structured products offered in South Africa compared to the rest of the world.
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