The UK structured products distributor seeks to capitalise on advisers’ set up around multi-asset DFM portfolios
Reyker is launching its first structured products fund after more than 30 years focused on white label offerings and private investor services. The UK firm’s Resilient Income fund is expected to be available for investing in February 2019, and will be based around structured products.
The new structured products fund, which will be managed by Dr. James Chu (pictured), head of market and investments at Reyker, is a natural next step based on the company’s discretionary fund management (DFM) experience.
“Funds provide more flexibility for some advisers,” said Chu. “We are not trying to compete with hedge funds and go for a 20% annual return. We aim to get a controlled return of 8% pa, in a transparent format that complies with Ucits regulations.”
The fund will deploy multiple strategies such as autocalls, and reverse convertibles to achieve its target return, and is targeted at investors seeking income.
“Ultimately, income strategies like reverse convertibles and phoenixes, growth strategies like kick-outs and supertrackers, capital protected and barrier based products, are all different strategies that are designed to deliver a certain outcome,” said Chu. “Putting these different structured products strategies in a portfolio produces a diversified multi strategy fund.”
“We will look at a variety of strategies that could provide a high defined level of income,” said Chu, adding that the fund will be fully managed in-house.
“Obviously, the fund has a third party authorised corporate director (ACD] and depositories, but we do the risk and the quantitative analysis here,” said Chu. “Unlike some competitors ours is a fully onshore UK fund. All investment decisions are made here.”