Guaranteed products gain in volatile markets, says Beechwood

Beechwood Bermuda, a provider of capital guaranteed investment plans for the international market, said current market volatility has put it on course for record monthly sales.

Guaranteed products gain in volatile markets, says Beechwood

The company, which is regulated by the Bermuda Monetary Authority (BMA), offers fixed and variable rate investment plans over fixed terms through a Bermuda trust, which guarantee an investor’s capital.

“I don’t wish ever for there to be volatile markets, but for these products it is a good scenario in terms of generating interest from clients who are uncomfortable subjecting themselves to the risk of sharp declines,” said David Lessing, executive vice president of products and services at Beechwood.

“This month will be our best month, and that has been true for each month over the last couple of months, as clients look around for other solutions,” Lessing said in an interview with International Adviser.

Rebrand announced

Lessing made his comments as Beechwood Bermuda announced the rebranding of Old Mutual (Bermuda), which it bought last year, to Beechwood OMNIA.

The renamed Beechwood OMNIA, which has been integrated into Beechwood’s existing platform, includes clients from approximately 40 of the company’s distribution partners throughout Asia, Latin America and the Middle East.

Although Beechwood OMNIA has been closed to new investors since 2009, existing clients of the business now have access to enhanced products offered by Beechwood, Lessing said.

He added that as more financial institutions add Beechwood’s two main guaranteed investment plans to their platforms, Beechwood OMNIA clients would have the opportunity to transition their investments to these products.

Long-term commitment

“We are committed to providing international investors with guaranteed investment plans, and there is a clear opportunity in this market, which contracted during the financial crisis but now is experiencing strong growth in client demand,” Lessing said.  

“Our purchase and integration of Beechwood OMNIA uniquely positions us to meet this client demand by sending a clear message to our clients that we are in this market for the long-term.”

Beechwood Bermuda’s investment solutions are featured on the platforms of over 80 banks and brokerage firms around the world.

The investment plans are supported by Beechwood’s portfolio managers, a senior management team consisting of the former chief operating officers of both Merrill Lynch’s and Morgan Stanley’s US wealth management groups, and Beechwood’s experience in managing risk as a reinsurer to global financial institutions.