The UK Structured Products Association (UKSP) has unveiled a free tool to help advisers and wealth managers incorporate structured products into their investment strategies and diversify their portfolios.

The Portfolio Optimiser provides an objective assessment of how structured products can fit into a portfolio, and the expected performance and risks of the implementation.  It is backed by data from Future Value Consultants (FVC).

While multiple applications already exist to analyse portfolios made up of funds and ETFs, UKSPA believes that the Portfolio Optimiser is the first opportunity for users to allocate to structured products within a model portfolio framework.

The tool lets users to create their own structured product for analysis, or select a product that is currently listed on FVC’s Structured Edge Research Service.

It also offers flexibility when creating a portfolio, providing a number of pre-built model portfolios alongside the chance to build a custom portfolio from the comprehensive list of ETFs and funds across all asset classes and Investment Association sectors.

Once the user has decided how much of the portfolio to allocate to the structured product, Portfolio Optimiser generates a detailed report of both historical and forward-looking analysis. It compares the original portfolio to the ‘modified’ version, with the structured product included.

Zak de Mariveles, chairman of the UKSPA said: “Investing without structured products is like playing a team with one man down – it’s harder to compete if key players are missing. We have designed Portfolio Optimiser as an easy-to-use and effective way to see how structured products can be taken off the bench to help optimise a portfolio line up.

“Portfolio Optimiser offers independently verified data for all advisers and wealth managers to use in order to assess the impact structured products can have on any portfolio’s expected risks and returns. We hope it provides reassurance for those considering using structured products as a way to diversify and enhance investment portfolios.”