French boutique rolls out structured products portfolio management service

Hilbert Investment Solutions has launched a portfolio management service based on structured products 'offering income seeking investors an alternative way of generating returns'.

The Defensive Income Portfolio managed by the independent adviser and financial engineering company will aim at providing an 8% return, paid quarterly. The portfolio is described as 'defensive' because it will seek to preserve capital in falling markets, as long as the underlying indices do not fall by more than 40% for each structured product in the portfolio.

There's been an increase in demand for income from independent financial and other wealth advisers, according to Steve Lamarque, founder of Hilbert. 'I am confident that we can provide good returns while allowing investors access to liquid markets and diverse opportunities through the structured product market place' with a 'viable alternative to existing propositions in the market,' said Lamarque, in a release.

The portfolio will be available in the UK and France: UK investors will invest through direct investment, ISAs or SIPs, while French investors will invest through the life insurance policy wrapper.

Future Value Consultants will undertake research and provide ongoing quarterly reports and risk analysis for IFAs. 'Structured products have a lot of benefits for investors, but it is important that they are properly put together and that their characteristics are understood,' said Tim Mortimer, founder of the independent pricing and valuation provider.

Today's launch follows Hilbert's appointment of David McFadyen as UK business development manager: Fadyen will manage all UK Financial Conduct Authority regulated intermediary client accounts and market the new discretionary portfolio management service.

Hilbert received approval from the FCA to offer discretionary portfolio, investment and retail plan management services, including structured product portfolios in the UK, in April.

The company is developing a range of structured products funds as a complement to its regular offering, but with an open-ended set up, which would suit investors that do not want to depend on tranche-based products.

Hilbert has sold five privately-placed structured products in the UK from its income series, a knockout range hedged by UBS and featuring a basket of indices comprising the Eurostoxx 50 and FTSE 100. The boutique has also marketed a number of private placements in France and has a live income knockout structure linked to the Cac 40 index in the French market.