New East Mids-based fund raises £40m in four days

Investors have ploughed more than £40m into a new East Midlands-based fund – in its first four days.

Leicester-based Mattioli Woods said it was “absolutely delighted” with the take-up rates for its structured products fund.

The wealth management specialist launched the initiative on 28 November, predicting substantial cost-savings and better returns for clients.

Chief executive officer Ian Mattioli said: “The fund has started with new investment of £40 million – and we see that as just the beginning.

“Our core aim is to better investor returns and outcomes. This innovative development has been designed with clients at its very heart”.

The structured products fund – recognised by the Financial Conduct Authority (FCA) – was created in association with Commerzbank AG, a commercial bank with branches and offices in more than 50 countries.

Mattioli Woods says it offers greater security, an improved investment process, higher potential returns and instant diversification of products.

Mr Mattioli said: “As a fund we are able to buy better and more flexible structured investments that will better client outcomes and returns.

“Our investment thinking is born out of running investors’ long-term pension funds – structured products have a very real place and use in our clients’ investment portfolios.”

Since its launch, the new fund has already raised £32m in cash with a further £9m committed to it over the next two weeks.

Mark Fuller, the company’s head of structured products, said: “The interest generated by the fund has been superb – and exceeded my expectations.

“Feedback from clients has been overwhelmingly positive and reinforces our view that they appreciate our endeavours to provide better solutions for their investments”.

He added: “The money raised has proved to us that our clients understand this new way of distributing structured products. As a collateralised fund, it has lower costs and is better diversified.”