A new Impact Note from Aite Group, LLC examines the changing face of the guaranteed product market in Europe, and looks at how current market conditions, particularly in France, Italy and Spain, are shaping the way these popular products may change in the near future.
With less than half of European investors now allocated to equity, many investors have begun to turn to guaranteed products again for their combination of security and reasonable returns.
“While asset managers view guaranteed products with curiosity, they provide a safe and simple investment to mass-market retail investors that are leery of cutting edge products market,” says Phillip Silitschanu, senior analyst at Aite Group and author of the note. “Now that these products are incorporating alternative investments into the mix, institutional investors are increasingly looking to guaranteed products as a means to match their liabilities.”