Instreet has been mandated by the Association of Independently Owned Financial Professionals (AIOFP) to create a new structured product for its holding entity, Personal Choice Management (PCM), as a result of adviser demand.
Speaking to InvestorDaily, Instreet managing director George Lucas said the product will give independents a point of differentiation in a post-FOFA industry.
“The main thing is that the AIOFP members will be able to differentiate their practices from what’s happening in the main institutional world which under FOFA, if anything, seems to be narrowing the offerings people are giving,” Mr Lucas said.
“This will allow the advisers under AIOFP to add value to their clients which is above what institutionally-aligned advisers could provide.”
The PCM Structured Product allows access to specific markets so that independent advisers can build investment strategies with underlying investments.
This includes mid-cap US, European, south east Asian and Australian stocks, which are often difficult to access.
“A lot of funds here concentrate on the large caps for exposure and also exposure to the Asian markets,” Mr Lucas said.
“The benefit for advisers is that it gives them access to markets which are not normally accessible for many advisers here - things like the mid-cap 400S&P, for example.”
In a statement, PCM director Peter Johnston said the group’s member feedback showed advisers want new investment options to differentiate their businesses from institutionally-aligned practices.
“The PCM Structured Product was designed with a working committee of advisers within the association to ensure that the end result was an investment solution that was relevant to a diverse range of advisers and their clients,” he said.
