Multi asset structured products for multi investors

Multi asset structured products is an evolving product set that is appealing to a wider group of investors, according to Citigroup.

Irfan Khan, head of equity structured products and warrants at Citigroup Global Markets Australia, spoke about the trend at last week’s Innovative Investment Forum in Sydney.

“(In the past) most of them (investors) have been single people who have always used (multi asset structured products) as an alternative asset. The increased acceptance of insurers and clients (in multi asset structured products) has been a conscious decision on their part to be involved,” Khan said.

Khan said multi asset structured products are a combination of assets that fund managers use all the time.

“It is no different to that. Multi asset structured products can be described as the sum of all parts,” Khan said.

However, Khan warns that even multi asset structured products won’t cover all asset classes.

“Don’t expect to cover all asset classes. Multi asset structured products can’t be everything to everyone. (Citigroup) is now challenging the way we view traditional asset classes and challenging the way we see underlying assets perform,” Khan said.

Khan believes people in his position are turning more and more into fund managers.

“We’re forced to greater justify our levels of reports, policing and transparency. They are the same issues you (conference delegates) went through,” Khan said.