DS Investment Solutions has reported €250m in structured products sales after a strong year driven by an increased flow of early expiring products and declining yield of euro-denominated mutual funds.

The figure comprises public offerings, private placements and corporate treasuries, according to Brice Gimeno (pictured), chief executive officer of DS Investment Solutions.

"The market is significant and allows for a huge variety of solutions that we can bring to our clients. We specifically think of bespoke solutions offering possibility of guaranteed returns and paired with either capital guarantee or not," said Gimeno. "We see the innovation in the opportunities to optimise corporate treasuries".

This is certainly an axis upon which the company wants to further develop to diversify its individual investors' client base, according to Gimeno. The recruitment of Marilyne Habib as a general manager, who is in charge for the development of the corporate and institutional clients' channel, "is already bearing fruit", according to Gimeno.

The structured investment solutions-dedicated spin-off brand of Primonial Group is also developing its credit-linked note product line, according to Gimeno. "Our CLN range is attractive for investors as it perfectly fits products that can be offered for corporate treasuries while respecting the conditions of six-year investment interest," said Gimeno. Over the past two years, the company has raised €100m from CLNs offered to its clients. "That was a real success, as our clients have been able to take advantage of the tightening of credit spreads and benefit from an interesting net asset value, which allowed them to arbitrate their products early."

Corporate treasuries are invested in structured products through capitalisation contracts and securities accounts ('compte titres'). The latter are popular for wrapping all types of listed and unlisted securities, as equities, bonds, Ucits, trackers and warrants. Securities accounts are largely expected to regain popularity in France, benefitting from Emmanuel Macron's government tax reform, according to various media sources. The 2018 Finance Bill, which was passed by French Parliament on December 21, 2017 includes a number of tax measures, including a flat tax of 30% (prélèvement forfaitaire unique, or PFU). The new flat rate will replace a progressive scale of taxation ranging from 0% to 45%, depending on the revenues proceeding from savings and market capital gains.

SRP's French database contains 120 structured products from Primonial's dedicated arm dating back to July 2002. Last year, DS Investments launched 24 structured products, including 12 products linked to the Euro iStoxx EWC 50, six linked to the SBF Top 80 EW Decrement 50 Points, two to the Eurostoxx 50 and one to the Euro iStoxx 70 Equal Weight Decrement 5%.

Last December, Primonial and La Financière de l'Echiquier entered into a strategic partnership to create a 'leading asset manager' in France and Europe for retail and institutional customers. The partnership is expected to be closed at the end of the first quarter of 2018, and does not exclude the possibility to benefit DS Investments structured products activity, according to Gimeno. In the meantime, DS Investments is planning to further develop its wealth advisers' distribution channel, and is looking for a new sales person to reinforce its dedicated team.

Related stories:

French companies partner up and target structured products under lead of former SG chief

France Market Review - November 2017

France's Primonial launches dedicated structured products distribution outlet