Structured product market grows 50% in 2009

January 22, 2010

Sales of structured products in the UK grew by almost a half (47 per cent) over 2009, in spite of the intense scrutiny placed on the sector over the year, to reach a total of £13.3bn, according to

Their research found annual UK retail structured product sales in 2009 grew to a record £13.3bn, compared with £9bn in 2008, despite providers, products and advisory processes being put under the microscope.

According to structured investment specialist Blue Sky Asset Management, the structured product industry is set to grow even further over the next decade as it becomes better understood by advisers and investors, and is more widely embraced across the investment community.

Analysis of the data made by Blue Sky found average growth over the last decade averaged 20.3 per cent each year, and total assets under management for the UK retail structured product industry now stand at £39.4bn.

Based on this, Blue Sky has predicted further industry growth will take assets under management to £225bn in the next decade.
Meanwhile, the company said 2010 had already started strongly, with 183 products and sales of £2.7bn.

Chris Taylor, chief executive of Blue Sky, said: “Last year witnessed an intense inspection of the UK’s structured product industry, with the FSA’s regulatory review placing providers, products and the advisory process under scrutiny.

“However, the industry sales data for the final year of the last decade clearly highlights the fact that ever increasing adviser and investor demand for investments that deliver greater investment control, that mitigate the uncertainties and challenges of prevailing market conditions through pre-defined risk and returns, is leading to increased awareness and use of structured products within portfolios.”

“Whilst quite clearly 2009 focused on the shortcomings of certain providers and their products, it is beyond doubt that structured investments are firmly established in the mainstream of investment options for investors.

“And the positive news, from investor’s perspectives, is that the regulator’s action and review in 2009 has left responsible providers in no doubt that nothing less than best industry practice is now acceptable.”