Diversified underlyings in SA

Offshore products have been the bane of South Africa's retail market since 2002, but market participants are predicting a change in attitudes as demand for diversified underlyings and the need to lock in profits takes root. But obstacles remain, not least the repercussions of previous poor performance. Matt Cameron reports

Local equity has proved to be the bulwark of structured product underlyings for the retail market in South Africa for the past five years. This followed the mis-selling saga that enveloped the market in 2002 and the downturn in global equity markets, which acted as a catalyst for South Africa's retail investors to spurn offshore investments and swarm to domestic equity underlyings.

Ultimately, it proved to be the correct decision. The JSE All Share Index climbed an enormous 38% in 2006 and also