Bespoke ProductsMay 27, 2014 - 11:53
Cube can work with advisers and investment managers to create products that are designed to meet the needs and requirements of a single investors, or to be used as part of a model portfolio.
Bespoke products offer the ability to create a product that is specifically tailored to the needs of the target investor group. Cube offers advisers and professional investors a unique package of support services that help you get the very best product.
- We can discuss your investors requirements and develop the product with you using our own product pricing capability before we go to any issuer
- Throughout the process we can offer you our assessment of risk and return. We can stress test the product to illustrate the effect that different product features, and the consequential change in the headline return has on the risk and return that the product offers. This allows you to evaluate which products offer the best characteristics for the target investors.
- We have agreements in place with a range of different banks, and so are able to offer you a choice of issuer.
- We know all of the banks that we work with very well, and can review potential issuers with you. We are able to discuss where we think that are likely to offer funding compared with their CDS and balance sheet ratios.
- When we get prices from issues we will be able to reconcile their pricing with our model. This helps us identify the issuer margin, and negotiate the very best terms for you, and then allows us to keep a track of the price that the issuer shows once the product starts trading.
- When we have agreed terms with the issuer you can use our risk/return analysis as part of your communication with the investors.
- We will be open and explicit about the fees that we are paid. We would normally be paid by the issuer out of the margin that they include in the note. We can charge you a fee instead if that is what you prefer.
- For discretionary managers and institutional investors we can arrange private placements.
- For advisers that want to be able to offer the product to advised retail investors we can be the retail product manufacturer and create a retail brochure