The UK distributor of structured products has won the award for Best Performance, UK & Ireland, and Best Performance, UK, at this year's SRP Europe awards.
SRP considered 157 structured products launched by the bank between 1 October 2023 and 30 September 2024, as well as two products that redeemed early.
In 2024, MB Structured Investments marketed 163 structured products on the back of its partnership with Barclays - the vast majority of these were linked to a single equity indices, mostly the FTSE100 (148 products/US$470m) followed by Eurostoxx 50 (26/products/US$79.49m) and S&P 500 index (24 products/US$76.8 m).
The UK distributor has also sold almost US$30m across 14 interest rates-linked structures.
This award [...] recognises that our structured investments are consistently delivering strong performance in unpredictable markets
Despite being in the market for only just over four years, MB Structured Investments has achieved what very few have seen in this sector in such a short space of time quickly becoming one of the largest players in the UK structured products sector as it continues to grow its client base and investment proposition.
The company produces around 20 products monthly, which may seem high relative to other providers, but that volume is required in order to fulfil the requirements of its ever-growing client base and varying end investor objectives. MB issues a mix of income paying, capital appreciation, and deposit style plans for a range of client demand.
“This award is a pleasing milestone in our journey,” said Robbie Briginshaw (pictured), managing director and owner at MB Structured Investments.
“The important part about this award is that it recognises that our structured investments are consistently delivering strong performance in unpredictable markets, alongside a track record of no capital losses across our product range to date, underpinned by strict testing internally, from our plan manager and from our counterparty partners.”
Left to right: Aaron Hearn (MB Structured Investments) and Tom Fletcher (SRP)
According to Briginshaw, the company’s investment strategies “have performed very well”, which results in “happy and repeat investors”.
“However, I must state we are not alone in delivering fruitful returns in many different market scenarios,” he added. “Many of our structured product competitors and associates can also show you impressive results, which is great for the sector as a whole and this should be widely publicised to hopefully encourage further review of these products by IFA’s/wealth managers.”
According to Briginshaw, MB Structured Investments’ goal is to offer further diversification and underlying structures such as dual indices, which can adapt and meet “ever-changing investor needs and to navigate investors through as many market scenarios as possible”.
“We champion an approach to clear, simple and transparent structured product design,” he said. “The risks of these products also must be made abundantly clear to any advisers who utilise them for clients, hence the amount of risk warnings and explanations in the brochures, or wherever you see our collateral.”
Market dynamics
Robbie Briginshaw: Understandably, we have seen shifting investor preferences towards more defensive strategies. The UK market continues to grow, and investors are becoming more sophisticated in product selection and that has resulted in an increase in the variety of products available.
Ranges include dual index, super defensive, callables, fixed income, alongside more bespoke work by providers who tailor the investment payoffs to specific investor needs, and a wider range of risk profiles.
We have also seen a trend when rates become lower. Investors are moving from traditional deposit-based investments and considering super defensive strategies with slightly more upside potential. They are also becoming more comfortable with structured products in general due to the education that has been happening over the past few years , along with the aforementioned results.
Scope for growth
Robbie Briginshaw: The biggest draw to our sector in my opinion is the fact that these products actually do what they say on the tin, and investors know the variables at the outset. Investors are tired of target returns and double-digit returns being preceded by double-digit losses.
And we believe that structured products help with that issue, if applied and distributed correctly for the right client.
The increased notional flow resulting from these results, and the competition for it, has also meant that the best products possible are often delivered to win market share, which has made better products but has also compressed provider margins.
There is a growing recognition of the consistent performance structured products are capable of amongst IFA’s / wealth managers. Increasingly they are challenging traditional fund and active management approaches.
Therefore, there is potential for significant sector expansion in the next five years, and vast numbers of traditional fund purchasers are discovering the clearly defined at outset explanation, and consistent outcomes of structured products and moving more clients across into them.
Target market
Robbie Briginshaw: There is opportunity in investor diversity and moving beyond traditional investor segments, it is important to attract a broader base and that is happening due to our relationships with our IFA/wealth manager network clients.
They mention that retail investors are becoming more engaged with their advisers, and the advisers are becoming more nuanced in their product selection.
Some of the discourse on structured products is underserved. Education, and highlighting the structured product sector's actual results-based outcomes, is our goal in the next phase of our development.
But the industry must also encourage and educate the broader market about the need to review these investment options for a proportion of a client portfolio.
Looking back
Robbie Briginshaw: Last year’s market conditions were driven by significant geopolitical tensions and multiple democratic elections, but we noticed an unusual market reaction to global events and unpredictable market behaviour.
With investors seeking more stable investment options in these conditions, IFAs not only consider traditional strategies but also investments with a more flexible approach to product design in order to create the outcome that the client requires and where structures may fit appropriately.
Consumer Duty
Robbie Briginshaw: We welcome the regulatory oversight that Consumer Duty brings as this will continue to promote transparency and concentrate on the investor's outcomes, rather than who has the biggest budget to advertise their "target/potential " return.
At the end of the day, it should be about results. We support evaluation of the products we deliver, as positive consumer outcomes should obviously be the primary focus of any investment provider.
Regulation has been positive for the market in my opinion. It promotes best practice and provides guidelines for product development and helps build investor confidence.
Market outlook
Robbie Briginshaw: The markets are difficult to navigate for everyone - nobody has the answer. We just try to create products that give enough bandwidth for varying market scenarios, to try and give the best chance of performing well.
The structured products sector has in general ( over the past 10 years ) had a consistent track record of positive returns which we should be proud of. There are positive growth indicators around the sector as structured products can be tailored to deliver despite unpredictable market behaviours and scenarios, ongoing global uncertainties and shifting investment landscapes.
Whilst we are happy to receive this award, we must prioritise promoting sector-wide performance over individual company successes and challenge traditional fund management approaches, highlighting the flexibility and reliability of structured products.
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