Luma Insights:

Unlocking Potential: The Rise of Structured Notes in Canadian Portfolios

As Canadian financial advisors explore diverse investment options to align with their clients’ objectives, the allure of structured notes is becoming increasingly evident. These instruments, often overlooked due to perceived complexities, are proving to be a gamechanger in the realm of alternative investments. With a unique ability to blend fixed income and equity classes, structured notes stand out as customizable tools that empower advisors to tailor investments to specific risk profiles and investment goals.

Historically, the apprehension around structured notes stemmed from their perceived complexity and limited accessibility. However, technological advancements, exemplified by Luma, are dispelling these myths. Luma facilitates on-demand analysis and competitive bidding, ensuring optimal execution and accessibility for advisors and their clients.

Structured notes offer a distinctive advantage by allowing advisors to inject their clients’ preferences directly into investments, aligning with market conditions and individual risk appetites. This customization not only diversifies risks but also enhances the balance of equity, interest rate, and credit risks, making structured notes a compelling alternative investment.

The technology-driven evolution in this space extends beyond execution to post-trade management. Luma provides features for event notifications, performance tracking, and risk reporting, transforming the ongoing lifecycle management of structured notes from a manual process to an efficient, digitized effort.

As the industry triples in issuance volume, the integration of structured notes into traditional portfolio management tools becomes crucial. Innovative features and data-driven decision-making are elevating the capabilities of financial advisors, making structured notes a core component of client portfolios.

Recognizing this changing dynamic, advisors should actively engage in conversations about structured notes with clients, leveraging technology to optimize execution and streamline post-trade management. By embracing this shift, advisors can unlock increased portfolio performance and deliver enhanced outcomes, standing out in a competitive field and ensuring they don’t miss out on the significant opportunities structured notes present.