“The sales figures of this year are totally different from last year,” he said. “Sales per note have decreased significantly. Many PPNs have not generated the performance that the advisers had hoped for.”
Lala also said it has been difficult to distribute structured notes issued by non-Canadian banks as dealers and advisers favour domestic issuers.
He added that advisers are also increasingly looking for alternative underlyings, such as soft commodities, although the appetite for hedge funds a