IDAD Performance – Q2 2023

We saw 74 product maturities in Q2 2023 as markets around the World either continued their good runs of 2023 or lost very little of the ground they had made up. The flow of maturing products is good for advisers as well as investors, providing a clear advice point, as well as the opportunity to deliver good news. The ability of structured products to deliver strong returns in flat, or even poorly performing
markets is very unusual and should impress investors, especially those used to traditional investment portfolios, which have performed poorly over recent years.

The global economy hasn’t suffered too many new shocks over recent months. Inflation remains
persistent in some countries and this has led to increases in interest rates as an almost universal remedy to suppress price rises. This is working better in some areas than others and, of course, there are plenty of winners when interest rates rise. Vast amounts of wealth are being transferred from longer term
equity or bond-based investments into cash accounts and IDAD have been delivering more cash-style products to investors. Our relationships with a large network of banks and brokers gives us the ability to access higher rates with the same, or a reduced risk-profile across a wide range of client types.

The outlook for the second half of 2023 is better than many thought it would be 6 months ago – with modest growth expected across markets. I think we’ll see periods of higher volatility and, although this can be frustrating for investors who monitor their portfolio valuations very frequently, this affords the opportunity for the improved terms on offer from most of our structured products. We plan to offer
international share classes (USD/GBP and EURO) on both our fund of structured products and our
thematic, future-focused fund in Q3 this year – if you’re reading this, you should be seeing details soon! Both funds continue with very strong performance and should complement most investment portfolios.

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