Forgetting to Put the Client at the Centre of the Structuring Process

Video summary: Forgetting to put the client at the centre of the structuring process

The importance of putting clients at the centre of structured investment decisions should not be understated, explains Affinity Capital Director Emma Davidson.

One of the biggest mistakes organisations make when considering structured investments is failing to put the client at the centre of the process. In many cases, structures are merely thought of as financial products that are bought and added to a portfolio.

However, ensuring clients fully understand structured investments is often a key component of maximising the potential returns. In fact, structures are most useful to a portfolio when they have been tailored to the investor’s unique needs.

Seeking independent advice from structured investment specialists helps organisations find the most suitable options for client portfolios, driving performance and reducing risk.

Tailored structured investments

Emma Davidson, director at Affinity Capital, says that while a generic structured investment may be suitable for groups of clients, the best outcomes come from a bespoke product.

This will enable the investor to secure a better risk profile and outlook for the structure, which should ultimately boost its performance. For this to happen, clients must become a more central focus during the process.

“It is essential that the company or people with the expertise are given access to what the requirements are from the clients side, so that a structure can be borne directly from what is needed by the portfolio,” Emma explains.

“Don’t think of structured investments as products. Rather, change your mindset and see them as tools. You need a handyman though to show you how to use those tools effectively to keep your house in shipshape condition!”

How Affinity can help

Confidentiality often prevents clients from allowing investment and private banks from gaining full insight into the decision-making process.

Similarly, clients often do not want businesses knowing their strategic intentions unless they have signed a non-disclosure or confidentiality contracts.

Emma says these agreements are easier to control between partners than in corporate-client relationships. Partnerships are also more reliable from a commercial and legal perspective.

As an independent financial investment boutique, Affinity Capital can work with professional investors on an equal footing, providing industry-specific expertise, objectivity and full transparency.

“Once the client or the portfolio sits at the centre of a proposition, the whole process of how structures are used and implemented within becomes a far more interactive, performance-enhancing and risk reducing exercise,” Emma states.

“The results end up speaking for themselves.”

To learn more about how Affinity can maximise your knowledge and understanding of structured investments, please contact us today.