The FTSE UK Dividend Yield Select index provides a relevant example of how to combine high upside and high dividend filtering. "Credit Suisse is now fully equipped to develop factor investing strategies for our clients, but we also believe in product governance so we address carefully suitability and added value when it comes to retail clients," said Haddad. The Swiss bank's approach is to bring innovation but with appropriate "prudence and caution", according to Geiler. "We focus our efforts on providing research ideas and designing underlyings that can add diversification to our structured products offering, while still maintaining the overarching objective of improving investor outcomes," said Haddad, adding that smart beta has been a focus for Credit Suisse over the last three years "because of its value as a structuring theme across equities". Credit Suisse is seeking to increase the offering of custom and systematic strategies "because we think this will add value to our clients in the UK market beyond the FTSE 100", according to Haddad. The new index marries an equity universe that investors like, with a proven technical innovation in the index construction, said Geiler. "Acknowledging the strong home bias, we thought it made sense to help design an index which is derived from the FTSE 100 in a way that still resonate with the domestic audience." "Investors in the UK tend to concentrate their risks on few indices compared to other markets in continental Europe," said Geiler. The FTSE UK Dividend Yield Select index is an alternative to the FTSE 100 as it lends itself quite well to structured products such as trigger redeemable with a more attractive payoff, according to Gary Geiler, vice president sales for the UK, at Credit Suisse. "When it comes to smart beta and custom indices in the UK, the market is not as broadly developed as in the rest of Europe, with a strong investor bias to vanilla FTSE 100 investments hence we saw an opportunity to address this lack of choice for the savvy investor in the market," said Haddad. The partnership expands the bank's collaboration with independent index providers as it develops different aspects of its structured products offering, according to Kerim Haddad ( pictured), head of equity derivatives structuring, distribution, at Credit Suisse in London. The new range will feature the FTSE Dividend Select index, which tracks the top UK high-dividend-yielding companies in the UK. Credit Suisse has partnered with FTSE Russell to develop a new range of smart beta investment products specific to the UK market.
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