Mutual appreciation

Mutual funds are one of structured products' fiercest rivals, dwarfing the nascent US business with $21 trillion under management. But US distributor Structured Investment Management has successfully combined the two products, bringing principal protection to the widely held format in a way that could change the face of both industries. Sophia Morrell reports

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There are myriad reasons why mutual funds have captured trillions of investor dollars - transparency, liquidity and huge advertising budgets to name but three. However, they cannot protect against market downturns, as recent months have painfully reminded investors. It is fortunate for Structured Investment Management (Sim) that its principal-protected mutual fund, which has been in development for around three years, was ready for launch at a time when losses are being felt so keenly.

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