Vol target structures find favour post-UK budget

By Rob McGlinchey
15 May 2014

Sellside firms are seeing increased appetite for structured products with volatility target mechanisms as a way of providing a primary source of income for UK individuals during retirement. The spike in interest comes on the back of Chancellor George Osborne’s 2014 budget that set out greater investment flexibility for individuals at retirement from April 2015.

Previously, at retirement, UK individuals were required to purchase an annuity. Structured products, meanwhile, were mainly used for capital accumulation or preservation up to retirement, but not as a primary source of income at retirement. Structurers expect the investment flexibility given to UK individuals at retirement to translate ...

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