Structured products revived with investor sentiment
The popularity of investment products tied to equity based investing has increased with investor sentiment, but consumer demands have changed, according to Macquarie’s specialist investment executive director, Peter van der Westhuyzen.
He noted the popularity of specialist products is closely aligned to investor sentiment and as their propensity to invest into share markets fell during the global financial crisis, “so did the levels for this type of products, because they’re very much tied to equity based investing”.
“But we’ve seen, particularly in the last few months as investor sentiment started to improve, the demand for specialist products has increased with that sentiment,” he added.
However, van der Westhuyzen said investors found good investment portfolios, capital protection and exotic returns attractive in 2006-07, but the global financial crisis has changed consumers’ demands.
“Investors are still attracted to capital protection and leverage, but what we’ve noticed not is that they prefer simplicity, transparency and smaller fees,” he said.
Van der Westhuyzen also noted that structured products with long-term investment focus and short-term flexibility have also gained popularity with improving investor sentiment.
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
