Abbey Financial Markets is looking to launch a platform of investment funds in the first quarter and will likely offer an innovative property-linked fund. Abbey has already issued several structured products linked to the Halifax House Price Index (DW, 11/17), but Guy Ratcliffe, head of property derivatives in London, said there is investor interest in an actively managed version of the structured notes.
The fund will likely offer capital-protected exposure to the property index by buying options with different tenors on a rolling basis, explained Ratcliffe. The fund wrapper has yet to be decided, but it will be offered to pension funds and insurance companies. Ratcliffe said it may be sold to retail clients through third-party distribution channels, but this has not yet been decided.
