Mr Dickie said Novia’s decision, which it attributes to strong advisor demand, is a significant move forward for structured product providers in overcoming ongoing distribution hurdles with fund-focused supermarkets and wrap platforms.

Previously Nucleus and Transact were the only platforms to host structured products alongside conventional funds, but Mr Dickie believes that although historically platforms may have been reluctant to offer protected investments this may be set to change due to mounting demand from advisors.  Indeed, in research carried out in March, Barclays Wealth said it found growing demand from advisors for better access to structured products.

According to Mr Dickie, this increased interest stems in part from recent maturities which have demonstrated structured products’ outperformance relative to tracker funds. Advisors’ perceptions towards these investment products have also clearly changed over recent months, he said, adding that amid tumultuous markets capital protection has proved to be a “huge boon.”

“Demand for products has grown exponentially but distribution through the platforms has not risen accordingly. Novia’s move could be a significant one because it highlighted the fact that advisors are increasingly demanding to see products on platforms alongside more ‘mainstream’ funds. I hope this remains the case and that other platforms follow Novia’s example,” said Mr Dickie.