Meyado tips on saving money

Tips on Saving Money

Going hand and hand with an effective household budget is saving money on those things that you truly need. To start saving, take an inventory of your needs to see where you can shave the dollars. Begin with the biggest items first, where the most potential for savings is, and move down the scale to the less expensive items. A moderate savings on one of the big items (houses and cars) combined with savings on the smaller items (food, clothes, etc.) can reap a large reward in your total budget. The following are some thought starters:

General Tips

Distinguish between Wants and Needs: You will save a ton of money if you don't mistake wants for needs. Needs are pretty simple to identify--those items that are necessary to sustain: Shelter, food, clothing, transportation. Wants are those things that enhance or possibly improve our family life. A car is a need. Unless necessary for your business, a $40,000 Sport Utility Vehicle is a want, even if a lot of people don't see it that way. Have you ever heard (or said) "I absolutely need...?" when the actual meaning was "I really want?" This is not to suggest that you shouldn't be able to have the things you want--only that to delude yourself into believing that a want is a need--and busting your budget in the process--is a recipe for financial disaster.

Is less better? Perhaps it was due to the booming economy, perhaps "keeping up with the Joneses", maybe its ego, but for many of us, we often seem to insist on the biggest and the best, no matter what the cost. When a $15,000 new car may be more than acceptable, we stretch the seams of our budget to afford a $25,000 vehicle. We buy $25 shirts with $35 designer labels attached. We opt for the $100 dinner at the trendy restaurant when a $20 meal would have been just as delicious. Think about where you are spending the family money--and how--to see if there couldn't be savings found with minor changes in habits.

Try before you Buy: This goes a long way in helping to avoid the silly purchases of things you rarely or never use. Before you buy something, especially items with big price tags, borrow one, rent one or try one out before you plunk down the cash. If you are bored with it, or determine that it truly is not something you need before you buy it (and you will be on a certain percentage of items) you will definitely be bored with it, or find it not that necessary, after! Example: You feel that you absolutely must have a new Jet-Ski, at a cost of $4500 (and that is before financing and taxes). You go to the lake, rent one, and 45 minutes into a one hour rental you are saying, "geez, this is a long hour." Saved: More than $4500 (perhaps a year of college fees for the kid!)

Specific Tips
The Big Ones

House Mortgages. In all probability, your mortgage will be the largest single expense in your budget. Obviously, getting the best deal here is of ultimate importance. Not comparing could cost you thousands of dollars over the term of the mortgage. An excellent resource for comparisons is LendingTree Mortgage Loans where you can submit one easy and quick loan request form and within 3 business days get up to 4 offers from competing lending institutions. Find more information on LendingTree Mortgage Loans here.

Cars. For most families, the next biggest expense is their car(s). Mistakes made here can often be as costly (on a monthly basis) as mortgage miscues. Take a look at the vehicle(s) you presently own. Do you own too much vehicle for your needs? Do you have equity in a car that you no longer use frequently? Could you downsize and save money, not only in monthly payments but also in maintenance, insurance and operating expenses? With the vehicles that you do own, are you getting the best deal on your repairs, maintenance and insurance?

And the Smaller Ones that Add Up

Insurance. Most of us pay our automobile and homeowners insurance premiums by habit, rarely if ever making comparisons. With many families insurance costs totaling over $2000 a year, even a 15% savings equates to $300 annually. Some hints from the Insurance Information Institute on saving money on your homeowners insurance include:

• Be sure to shop around. It may take a little time, but it could save you money. The insurer you select should offer both a fair price and excellent service.
• Raise your deductible. Deductibles on homeowners policies typically start at $250. By increasing your deductible to $500, you could save up to 12%.
• Beef up your home security. You can usually get discounts of at least 5% for a smoke detector, burglar alarm or dead-bolt locks.
• For more tips, see the Saving on Homeowners Insurance section.

For automobile insurance the Insurance Information Institute recommendations include:

• Shop around. Prices for the same coverage can vary by hundreds of dollars from company to company, so it pays to shop around. Surf the net, ask your friends or call your state insurance department for ideas about companies and agents to contact.
• Ask for Higher Deductibles. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15% to 30%.
• Take Advantage of Low Mileage Discounts. Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.

Insurance Resources

Netquote.com Since 1989, NetQuote® has provided consumers with a free, simple, and effective way to fulfill their insurance shopping needs

InsureMe.com With one simple application, InsureMe will get you insurance quotes from top-notch insurance companies.

Food. Not only do you need to eat food to live, the expense of it for the average family can eat you alive! Since food is a necessary and recurring expense, just saving, for example, $20 a week on your purchases can convert to over $1000 in savings over the course of a year.

• Try to plan in advance. By knowing what you need, you will be able to buy in larger quantities (almost always less expensive) and cut down on convenience food purchases (always more expensive).
• If you use national brands, spend a little time clipping and using coupons. $1.50 invested in the Sunday newspaper could save you $20 or more at the checkout. Organize the coupons by type, so as you develop a shopping list you can make a notation if you have a coupon.
• Consider store brands or generics. You may find the quality is equal to (and sometimes better than) the national brands, and store brands/generics are generally considerably less expensive.
• When it is on sale, stock up. Of course this only applies to those items that you use on a regular basis. Stocking up on an item which you use once a year doesn't make sense (and robs you of spending money, not to mention shelf space).
• Shop at the store that is the cheapest overall. Surveys have shown that there is sometimes as much as 10-15% difference on identical grocery orders at 2 different stores in the same area. If you spend $500 a month on groceries, that can equate to $600 to $900 a year in savings. Don't throw away your money just because it is your habit to shop at a certain store.

Clothing. Although many consumer items have actually reduced in price over the last few years (most notably, computer and electronic items) the cost of clothing has seen a continuing upward spiral. In addition, a purchase price that not too long ago bought a good quality garment now seems to buy virtually "throw away" clothing. With some planning, though, it is possible to maintain clothing purchases that are in line with your family budget.

• Buy separates that coordinate. You can make numerous combinations with a few well matched items. For women, jackets, slacks, skirts and blouses can be mixed and matched to create many different outfits. Plus you can change the look of these outfits with accessories such as jewelry or scarves. Men's clothing offers a wide variety of separates that can be coordinated: blazers, slacks, shirts and ties can all be interchanged to create a versatile wardrobe with a minimum of expense.
• Buy a season ahead. Buy next year's winter clothes at the end of this season and save. The styles won't change that much (if at all) and you will pocket a big difference in the price.
• If you are "hard" on clothes, buy quality. Buying an $80 pair of shoes that will last saves money in the long run instead of having to buy 3 pairs of $35 shoes that don't hold up.
• Stay away from trendy fashions. Stick with the basics. You can always be sure you clothing styles will last from year to year when you buy perennial stand-bys such as medium length A-line skirts and solid tailored blazers for women or neutral color shirts and tailored to semi-tailored sports coats for men.

Telephone. In most areas of the country, your local phone service is currently regulated and has a fixed price. The difference in long-distance costs, though, can be eye-opening. Many consumers simply stick with their current long-distance carrier because it is convenient and they feel that it would be a hassle to change. By shopping around, however, you may find some considerable savings that can really add up. We were able to find a plan that gives savings of about $16.75 a month and $200 a year, a fairly considerable amount. Switching over was simple and not time consuming--a pretty good return on time spent!

Comparisons. It used to be that comparison shopping was a long and drawn out process. Driving from one store to another or making numerous phone calls could be a real time waster. Even if you were able to make an adequate comparison, sometimes it wasn't worth the hours you needed to invest to get the comparison. The Internet has changed much of that. Now you can make quick comparisons on most items, usually within a matter of minutes. What would once have taken hours to accomplish now happens at the click of a mouse, a real time and money saver. Don't forget online resources. For example, a site such as Ebay could save a lot of money for a couple of reasons: First, you can make comparisons among a number of sellers and second, you may be able to find second-hand merchandise which can save you a bundle.

Travel. Price differences here can be enormous. The difference in costs on the same trip--same airline, same hotel, same car rental--between two travelers can run into the thousands of dollars. Take a little time to comparison shop to assure the best possible deal. A travel resource that we have found effective for air, hotels and cruises is  Travelocity,

 

Meyado

Singapore

 

 

 

Do what you love to do, by Jamie

When I first went to University, I went out on my first night with a guy called Neil Redfern, an amazing rugby player and captain of the University rugby team, obviously I wanted to play for the first team so I listened to everything he said, one thing that does stick in my wind was: "If you live each day as if it was your last, someday you'll most certainly be right." It made an impression on me, and since then, for the past decade or so, I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something.

Doing what you love to do is one of the greatest secrets I can give to you, that will lead you to financial success.  If you can find something that you love to do, something that you have such passion for then work doesn’t feel like work, it feels like fun.  Most self made millionaires that I speak to all made their millions from doing something they love to do; if you love what you are doing then the money will follow.



I think we have all sat around the table having a few drinks with friends and family, and that age old question comes up, “what would you do if you won the lottery”  Well when I speak with Millionaires they all have the same answer and not because they already have millions, they say I wouldn’t change a thing.  So I push them further and they all answer the same way, “because I love what I do, why change it”

 Meyado

 Singapore

http://www.linkedin.com/profile/view?id=105929858&locale=en_US&trk=tyah&trkInfo=tas%3Ajamie%2Cidx%3A1-2-2

Job vacancy for a senior Wealth Manager / IFA / Financial Advisor in Singapore

Meyado Singapore is seeking to recruit a senior advisor to its' Singapore team.

The relevant candidate must be experienced, senior and well established as an international advisor.  Preference will be given to applicants already established in the South East Asia region, although all applications will be considered.

A generous package is available to the right candidate.

We are not looking to hire en masse, rather we are looking for one individual to join our well established, highly reputable office, so only career oriented people need apply.

In the initial instance please apply via our website www.meyado.com.sg

Meyado Singapore

Meyado Recruiting in Singapore

Meyado Private Wealth Management Singapore seek two Wealth Management Assistants

May 2013

Meyado are currently looking to hire two persons in the Singapore office.  The role will entail market research, marketing, fund analysis and product development leading to possible career advancement to an advisory level, or to the investment committee.

We invite applications from all types of candidates, but specifically require that candidates will have the requisite qualifications to warrant an employment pass by the Singapore Ministry of Manpower, as well as being self motivated, confident and energetic enough to shine in the very competitive market place we operate in.

Meyado strives to have the most professional team of employees in the Singapore Wealth Management industry and all candidates must enhance that reputation.

Visit the Meyado Singapore website and visit the careers page  for full details.

Mark Paine

Meyado

*** Thank you for your interest - these positions have now been filled.  Please check our website for current vacancies. ***

Should I buy Gold?

By Mark Paine, Meyado, Singapore

Gold prices have fallen significantly over the past months, recent volatility has seen gold trading at around the $1400 level of late.  Having reached a 2 year low gold has surged forwards in the past days creating 12% gains in gold price.

The US mint limited sales of physical bulletin as investors rushed to buy gold.

We have long advocated gold as part of portfolio planning, but like with everything in life moderation is key.  Certainly for persons who currently hold gold and who bought at higher prices now would be a good time to average that cost down by buying in at the lower levels.

Gold has always been a difficult asset for retail investors to speculate on, but if you are going to do it, now would be the time.  Access via funds, ETF's and structured products make it easier than ever to hold bullion, but there's something fun about purchasing a bag of gold and having hold of your asset.

If you'd like to discuss how gold could fit in as part of your portfolio planning our advisers are on hand to give advice and assist purchases.

Mark Paine
Meyado

Visit our Meyado linkedin page

Batam Conference 2013

We just returned from a weekend at the Turi Beach Resort in Batam.  10 of the team were invited for the weekend to help further develop our client value proposition.  With MAS introducing the FAIR recommendations we felt it prudent to spend some time offsite reviewing our business model to see how we can do a better job for our clients.

We came away with 4 key points which include, client servicing and IT, CRM, adviser education and new client support materials.

The implementation work now begins and we have a 100 day plan to achieve our objectives.

We also managed to find a little time to have some fun!

Mark Paine and the rest of the Meyado Singapore team

Mark Paine
Meyado
Singapore
www.meyado.com.sg

Meyado's Christmas Event in Singapore

Thanks to attendees of the Meyado 2012 Christmas Ice Skating event at Kallang on Sunday.  This is the third time we've run this event and it was the best by far!

 

    The Meyado team in Singapore
Ice Skating in Singapore may not seem the obvious past time activity which is why we always like to host this event. 

Additional thanks to all those who contributed to the Childrens Society of Singapore raffle and congratulations to the winner who gets a lovely Marks and Spencer hamper for Christmas.


Mark Paine
Managing Director
Meyado Singapore
www.meyado.com.sg

Financial Adviser Jobs in Singapore

We currently have one remaining vaccancy for a financial adviser in Singapore.

Ideally candidates require a degree in order to secure an Employment Pass from the Singapore government, as well as three years regulated experience of providing financial advice.

Candidates will be required to have, or be exempt from passing the CMFAS exams M5, 8, 9, 8a and 9a.

Apply in writing via our website www.meyado.com.sg

Mark Paine
Meyado Singapore

Exchange Traded Notes

The exchange-traded notes (ETNs) market in the US and Europe is becoming more complementary and bespoke, while the enhanced exposure ETNs can provide is taking market access to the next stage. Sarah Nowakowska reports

They are known for their low cost, ease of access and portfolio diversification potential, and since their first inception in the US in 2006, exchange-traded notes (ETNs) have become an integral part of the exchange-traded products (ETP) platform both in Europe and the US. Exchange-traded products have seen strong developments and growth in the past two years, but the most popular and fast-expanding remain exchange-traded funds (ETFs), which dominate in terms of assets and number of products listed. According to the US National Stock Exchange, assets in US-listed ETFs and exchange-traded notes totalled approximately $1.064 trillion as of August, an increase of more than 31% compared with August 2010, when assets hovered around $815 billion - a number led by ETFs, with ETNs representing a small percentage of the total.

"Most exchange-traded products are physical or swap-based ETFs, which make up around 90% of the market," says Axel Lomholt, head of ETF products, iShares for Europe, the Middle East and Africa (EMEA). "The remainder of it is made up of ETNs and exchange-traded commodities. There is scope for growth in the ETN market, but the question is how much it is going to grow. This market will grow and get better, but not to a level some people believe."

While the fast growth initially predicted for ETNs failed to materialise - partly due to their status as unsecured debt securities putting the spotlight on the credit risk they involve - the opportunity they offer investors to gain exposure to otherwise hard-to-access asset classes is giving them a more strategic role in investment portfolios. They can also offer the same attributes - such as transparency of fees, liquidity and being listed - that characterise ETFs, but minus the tracking error that can be an issue with physically backed ETFs. Although ETNs are unlikely to be regarded as a contender to the remarkable growth of ETFs, they are finding a place as a flexible investment vehicle that can incorporate customised strategies to enhance the type of exposure sought, which could help build a global presence that includes Asia.

Taking the bespoke route

One of the more noticeable market access stories has been that of accessing volatility, which has become increasingly popular in recent weeks as equity markets took a tumble. Exchange-traded notes are one of few existing vehicles to enable exposure to volatility to either hedge positions or take advantage of strong market movements. "The concept of volatility in terms of controlling and managing it is a key theme this year. There is good demand for products that either give direct access to volatility or have volatility controls that give access to a market but maintain your volatility at a constant level," says Michael Clarke, managing director, structured products at Credit Suisse in New York.

Investing in volatility involves rolling futures in volatility, but one of the issues that arose was the cost of carry that makes volatility futures prone to the same negative roll cost commodities futures experience in a contango situation. While ETNs can represent an effective way of accessing volatility and enable a more broad-based set of investors to access it, the challenge has been to try and mitigate the cost of carry

that can result from holding a product for too long, particularly short-term volatility products designed to be more of a trading product than a long-only one.

"ETNs target a wide investor base that was not familiar with these types of products before, and give them some kind of market access to this type of asset class," says Arnaud Jobert, part of the equity derivatives structuring team for EMEA at JP Morgan in London. "However, it can be risky to hold a simple, outright long exposure through an ETN because your gains can be wiped out suddenly."

Although ETNs are a good market access story, says Jobert, ETNs alone are often meant to be more of a pure market access product that requires active trading. "Institutional investors tend to prefer a more bespoke approach through a broader set of strategies, where they can dynamically allocate their holdings to a wider range of exposures depending on whether the focus is on an outright long volatility profile, such as a tail hedge type of product, or a more cost-efficient carry trade," he says.

Addressing the issue of carry cost, Barclays Capital recently expanded its suite of volatility-linked exchanged-traded products with the listing of the iPath S&P 500 Dynamic Vix ETN on the New York Stock Exchange (NYSE). The aim was to offer a product investors could hold that would require less active management to access equity market volatility as a means to hedge their portfolio. The product incorporates a strategy that dynamically allocates between the S&P 500 Vix Short-Term Futures Index Excess Return and the S&P 500 Vix Mid-Term Futures Index, and is designed to be more efficient than the bank's iPath S&P 500 Vix Mid-Term Futures ETN (VXZ) by incorporating some allocation into the iPath S&P 500 Vix Short-Term Futures ETN (VXX).

"Our VXX short-term volatility product is more of a trading/institutional product and not a long-only investor product," says Ian Merrill, director for investor solutions at Barclays Capital in New York. "VXX has the most roll cost, so if you were to hold onto that for longer than a week or two you could see material deterioration. The dynamic volatility product minimises [the roll cost] even further because it allocates short- versus mid-term to mitigate it."

Other banks have also developed strategies that aim to capture volatility more efficiently through ETNs. Credit Suisse's strategy has been to look at hedge fund-linked strategies that replicate hedge fund returns and volatility strategies, for which an ETN wrapper lends itself well because there is no tracking error, and it makes it more tax-efficient than a fund for US individuals, says Clarke.

The bank has raised $500 million-$600 million in assets under management (AUM) since the launch of its six volatility ETNs in November last year. During the peak of the crisis that battered equity markets in August, its inverse Vix short-term ETN peaked at more than 31 million shares traded on August 9, with volumes regularly exceeding 10 million shares traded over August.

However, the credit risk component attached to ETNs as unsecured debt securities, which in effect makes them as secure as the institution that issues them, still affects the scope for development of the ETN market. This prompted UBS to focus on a more bespoke approach aimed at investors such as traders rather than longer-term buy-and-hold investors. "We focus on launching products that, for whatever reason, are less attractive as an ETF," says Christopher Yeagley, head of US structured equity products at UBS in New York. "The ETN market in the US has grown tremendously. In 2008, it was just under $4 billion in assets under management; today it's closer to $16 billion AUM."

Another focus for the bank has been to build a complementary business rather than a competitive one against ETFs. In September, UBS launched 12 new volatility ETNs consisting of six long and six short products for investors who want to be precise as to where they want to pick their volatility exposure, says Yeagley. "ETNs are usually the better mouse trap when it comes to getting managed limited partnership company exposure (MLP). One of the drivers for MLP ETNs' popularity is that they can have tremendous yield, but in a fund or ETF it's very negative from a tax perspective," he says.

Seeking to minimise the credit risk ETNs entail, BNP Paribas started to offer fully collateralised ETNs. The aim is to offer investors "the best of both worlds", says Bertrand Delarue, head of institutional product engineering at BNP Paribas in Paris, where the ETF can offer the liquidity and transparency and the ETN a greater product selection. "Collateral is key, but even more so for some ETNs such as volatility-indexed ETNs, which are supposed to provide some protection to investors in cases of market crashes, such as in situations when the issuer is under stress," he adds.

The first ETN launched by the bank is linked to the Eurostoxx 50 volatility controlled index and is collateralised using liquid assets as collateral such as G-7 bonds and eurobonds. The aim is to have the ability to offer exchange-traded, liquid and listed investment vehicles that can be launched quickly in a cost-efficient way and meet market expectations in terms of the volatility of exposures sought, says Jean-Eric Pacini, global head of structuring for equity derivatives at BNP Paribas in London.

Beyond volatility, ETNs can be used to access a particular underlying that could not be accessed easily by other products, while retaining the exchange-traded features attractive to investors. The flexibility an ETN provides means it can also allow banks to offer innovative investment strategies within the grasp of investors who have constraints, adds Delarue, such as only being able to trade listed products or products easy to account for, as well as value and sell. "The scope for the underlying product is much wider, and anything that is relatively liquid can be structured as an ETN," says Delarue. "It's a good way for banks to sell products in a convenient wrapper for clients. Just as ETFs were launched some time ago and found their place in investors' portfolios without displacing active managers, ETNs will probably do the same... The ETN market is likely to grow and be to the structured products market what the ETF market has been to the asset management industry."

Exchange-traded note wrappers are also popular to access those commodities that are less efficient or hard to access through an ETF, while leaving room for more bespoke strategies to be incorporated to enhance the type of exposure investors seek. Royal Bank of Scotland (RBS) recently added a fourth ETN to its suite of RBS Trendpilot ETNs. Linked to oil and listed on the NYSE Arca platform in the US, the ETN is designed for investors such as financial advisers who seek a trend-following strategy that can mitigate the volatility of investing in oil. As such, the tactical strategy on which the product is based aims to allow long-term exposure in bull markets and the ability to be pulled out in bear markets to mitigate risks.

In Europe, where a listed certificates market was already in existence before the first ETN was listed in 2009, ETNs have become a very scalable business, says Patrick Grob, head of structured derivatives sales, EMEA at UBS in London. The bank's turnover has also grown from 8% in August 2010 to 10% in August 2011. "Markets are now much more difficult to navigate and require flexibility, which is something ETNs can provide by bringing access to a variety of asset exposures that couldn't be accessed previously," says Grob. "In the case of emerging and frontier markets, for instance, not all countries are readily investable. ETNs can give access to such markets in one convenient transaction."

The Japan milestone

There has been little in terms of development in Asia so far beyond the first cross-listing of a commodity ETN in Singapore by Barclays Capital in 2009. This, however, may be set to change, as the bank recently listed a total of 10 ETNs on the Tokyo stock exchange in Japan through its iPath platform. The first nine ETNs, giving access to commodities and volatility, were listed in two phases in the form of Japan depositary receipts (JDRs), a structure needed for an ETN listing in Japan that works like beneficiary certificates issued by trust banks in exchange for foreign ETNs as trust assets, and which are treated as securities. "The launch of the first ETNs in Japan was a long process because there was a need to create the JDR/ETN platform," says Merrill. "What was interesting about it was that our European iPath ETNs were essentially wrapped in the Japanese JDR, which can improve the liquidity of the European products themselves while at the same time accessing the Japanese market, so this represented a great opportunity."

The S&P 500 Vix Short-Term Futures JDR was the tenth ETN the bank listed in September, giving exposure to volatility, and aimed at individual investors who actively trade as well as hedgers who tend to have long portfolios in equities and seek to hedge according to market circumstances. "This is a completely new product to Japanese investors, and judging from the current market circumstances, listing a volatility product is very timely," says Yasuhiro Ishibashi, head of the investor solutions sales division for Japan at Barclays Capital in Tokyo. "We're already seeing interest from non-Japan Asian clients, as there is no volatility iPath ETN outside Japan in Asia."

The bank is working towards issuing more ETNs in Japan, including the possibility of listing FX and interest rates-linked ETNs, while leveraged products could also be added if a deregulation takes place in the future, says Ishibashi, as regulations for now do not allow such products to be listed on the Japanese market.

The ETN's scope for growth in other regions of Asia is less clear, however, partly because it is a relative newcomer and the exchange-traded market itself is not yet as mature as in the US or Europe. "It's possible that as ETFs develop, ETNs could follow behind, making it easier for ETN providers to introduce the products," says Marco Montanari, director, head of db X-trackers ETFs and db-X funds at Deutsche Bank in Hong Kong. "As a first step, you need to have products, and right now there is only one ETN listed in Singapore."

Another issue affecting the market growth potential of ETNs has to do with counterparty risk, and the fact ETNs have a 100% counterparty risk is a concern for regulators, adds Montanari. Competition from existing alternative products that track an index, such as equity-linked products, could also dampen developments in Asia. "If they can provide a specific, niche access to a market, then [it would help]," says Singapore-based investment adviser Jean-Philippe Lionnet at Meyado Private Wealth Management. "The credit risk is an issue for investors. Right now, there aren't enough ETFs and the lack of creation of a liquid market makes it hard for ETNs."

Although ETNs could be collateralised as a way of reducing counterparty risk, the issue that would arise is that of losing the product's attractive low-cost feature. "If you collateralise an ETN, it could be that the price becomes similar to an ETF, and although it becomes a product with a reduced level of risk, there would be a collateral to pay, so you would get more protection but at a higher cost," says Montanari. "If the choice is between a collateralised ETN and a Ucits-compliant ETF, we choose the latter because it is more recognised in the region and it sells."

Barclays has been working towards raising product awareness in Asia as well as other parts of the globe, where ETNs are still mostly absent from markets, by cross-listing ETNs as a first step, although one of the main issues for the bank is to reassure regulators about unsecured debt. "Credit risk is something certain investors have an appetite for, and an uncollateralised product is not necessarily a bad thing if you're getting access without tracking error," says Merrill.

The bank is also looking at ways to access the Latin American market, where certain regulatory regimes needed for ETN listing have not yet been approved. The existence of an investor demand for such products is however in the product's favour, says Merrill. "With each successful launch in other countries, regulators will see the usefulness of these products for certain investors and they will take a closer look at the structures," he says. "What drives a lot of that is institutional investors around the world, who cite the tracking error that can occur with ETFs, so if the ETN gives you closer access to an index's return that's harder to reach, like volatility, they'd like to take a closer look. ETFs are a much bigger market and always will be, [but] there is room for all of them, and it depends on what asset class and the type of investor."