Abbey Financial Markets has entered the fund-linked derivatives market by writing an option on its flagship multi-manager fund and packaging it up with a zero-coupon bond to offer investors 65% participation in the fund and full capital protection. Rob Reid, head of the retail structured products group in London, said it will market the product through internal and external distribution lines to retail investors.
Abbey is looking at other potential fund-linked products such as capital protected mutual and hedge funds and hedge fund index structures, according to Reid, who explained the firm will structure these deals if there is a retail appetite. "We have the capacity to provide these products, but it's dependant on investor sophistication," he noted.
