“But from a manufacturer’s point of view we tend to provide those things in many different ways. Being part of a global group is what’s enabled us to provide it in what we believe is the most client-friendly, most flexible way that enables them to retain some degree of liquidity they are not able to retain in some of the other structures. “It also enables us to provide the guarantee in a way that ensures we provide the guarantee rather than the client self-insuring against the risk by buying and selling assets.” Emery says that for the time being, at least, demand from the retail market and the financial planning community for income guarantees remains high. “Having spent a long time building up assets, people have a natural aversion to seeing it reduced,” Emery says.

“We do think this is a marketplace that is perhaps in its infancy still in Australia. It’s been more developed in other parts of the globe, we believe, and that is to do with the level of adviser interaction with clients in Australia. Now what we’re seeing is many advisers recognising there is a place for capital guaranteed structured products as part of a client portfolio – perhaps not as the whole solution to a client portfolio, but certainly as part of a portfolio. “We’re seeing more and more advisers now asking us how do these work? What are the client benefits? How exactly do they help the client? What are the pitfalls? “That’s where we believe we need more transparency around the types of structures you’ve got and how they work. “We think we’re going to see more competitors come to the marketplace. Some are going to come with similar structures to the way we do it; other competitors will come with different structures.”

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