Structured products lose their appeal

Advisers have become wary of the fee structure and level of risk associated with derivatives

A senior asset management executive recently received an e-mail pitch from a private bank for a structured product. It came from what he described as a “big and serious institution” so he decided to take a look.

What he discovered appalled and alarmed him in equal measure. “It was clear that this product was all about the firm’s investment bank shovelling c*** down its private banking distribution channel. And the disclosure was appalling,” he said.

WSJ Logo