Brian Walsh, Business Development Directors, BlackBee
Irish Broker Magazine, November 2018
The challenges facing investors and their advisers today are unique. Increasingly investors are asked to navigate difficult markets and find ways to generate returns amidst low, rising, flat, and falling markets. Investors rely on the expertise of their financial adviser in understanding the array of investment options to meet their needs, commensurate with their attitude to risk. The risks inherent in the market presently range from a potential correction in the longest bull run seen for many years; the tightening of monetary policy and an end to the low-interest rates cycle; to the geopolitical, to name but a few.
Within this environment of uncertainty and potential volatility and with cash returns continuing to be sub-optimal, the question for advisers is how to deliver improved risk-adjusted returns for their clients.
The answer could be structured products. Structured products are designed to facilitate highly customized risk-return objectives.
They can offer alternatives both in terms of asset exposure and risk-return payoff. As market volatility increases, structured products can be designed to provide high levels of capital protection and to profit from falling and volatile market conditions.
BlackBee operates a structured product cycle that offers opportunities typically every 8 weeks. In our most recent product Cycle ending on 7th November, we offered 8 products touching each point of the ESMA risk rating of 2 through 7.
We understand that investors have a number of goals, and diversification of product offerings is one way we try and meet the needs of our growing investor base.
Product Philosophy, history and results
Since BlackBee was authorised as a MiFID regulated firm in 2014, we have designed and distributed over 200 Structured Products. The portfolio builder approach that we have adopted includes Index, Yield and Alpha opportunities. Our investment approach has been driven by 3 simple but strong core principles
• Strong Investment Ideas
• Optimal structuring to protect capital
• Relevant Market Timing
Our products contain all of these characteristics and we place considerable effort and time on generating relevant investment ideas, with the aim of protecting capital and generating return. In addition, we focus on shorter time frames while offering daily liquidity. This is important as it allows advisers to manage clients’ portfolios and offers clients more control of their investments.
At BlackBee our investment approach is based on methodology, research and investment skills. We capitalise on market inefficiencies through insightful research and a skills-based approach. We construct robust proprietary models to identify opportunities and uncover risk. This approach is integrated into all our investment products and services. We are the trusted partner of Financial advisors, institutions, and charities in delivering investment success. Investing is ‘understanding’ the return on offer for the risk being taken, BlackBee’s philosophy and approach are built on its research capabilities and its ability to provide that understanding. BlackBee’s obligation to clients is not to make forecasts, instead, it is to explain economic events, place them in context and build investment ideas around the likely winners.
Our Knowledge Labs feature an expanding set of presentations across asset classes and investment themes designed to give you the tools you need to empower better decisions and build stronger portfolios for your clients. We use these Knowledge Labs to engage with the advisory community to deliver to your clients. This includes the delivery of new products tailored to your clients’ needs. BlackBee Knowledge Labs are held nationally and deliver CPD regulatory training requirements to many organisations, as required. Knowledge Labs give advisers the opportunity to engage and network with similar members of financial organisations and institutions.
BlackBee Investments Limited trading as BlackBee & BlackBee Investments is regulated by the Central Bank of Ireland.
BlackBee does not provide investment advice, but rather provides a range of options for investors.