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Lowes to launch structured product Fund

20 November 2018

Lowes Financial Management is launching a new UCITS fund, aiming to deliver investors in excess of a cash plus 5% return annually over the medium to long term.

The Lowes UK Defined Strategy Fund will offer clients exposure to structured investments. However, rather than buy individual structured products, the fund will operate like a typical UCITS fund, with daily pricing, a diversified asset base, wide wrapper availability and platform execution.

The new fund will have a particular focus on autocall strategies, which run for a set period of years but offer the opportunity to deliver a pre-determined return at certain points– such as an index reaching a certain level at a future date – which then results in products delivering their return and maturing for subsequent reinvestment, the firm said.

The fund will continuously repeat this process via the underlying investments, meaning it will have exposure to many strategies at any given point, thus creating a diversity of return profiles and counterparties, although the latter will be heavily biased towards UK Government issued Gilts..

Lowes will not only select the investments, but actively manage the portfolio with the option to sell investments ahead of any potential return data if it deems it beneficial to shareholders.

Ian Lowes, managing director, Lowes Financial Management (pictured), said: “With this innovative new approach, it will now be possible for advisers to provide their clients with access to the returns available from a pool of structured investments whilst also having the flexibility to withdraw money at any stage.

Lowes added: “Based on tried and tested strategies, and diversifying investments across a broad spectrum of issuers, we think this has the power to transform the way advisers think about – and invest clients in – structured products.”

The fund, which is set to go live on 3 December, will have a three-week offer price of £1 per share.

 

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