Capital at risk products maturing in the first half of the year made an average annualised return of 8.06 per cent over an average term of 3.28 years, according to figures published by Structured Product Review.
In terms of overall maturities, the data showed that 231 products distributed through independent financial advisers that matured in the first six months of the year made a gain, with the exception of four which returned investors’ capital.
Over an average term of nearly four years, the average annualised gain of these products was 6.84 per cent.
The first quartile of products made an average annualised gain of 10.06 per cent, while the bottom quartile made an equivalent figure of 4.07 per cent. The average total gain of all of these products was 29.86 per cent.
Products in the ‘capital at risk’ category - which offer higher returns by putting capital at risk - made up the majority of products, constituting 129 out of the 231.
Breaking the product structures down, ‘capital protected’ products made the equivalent figure of 5.89 per annum over 5.34 years, with an average annualised gain of 5.05 per cent over an average term of 4.6 years for deposit based products.
Lowes Financial Management runs Structured Product Review, which collates the performance data for all plans distributed by IFAs that matured in the first six months of this year.
Ian Lowes, managing director of the firm and founder of Structured Product Review, said: “These results show that clients have achieved attractive gains through investing in structured products and even those that did not mature with a gain, protected capital.”
He added that while past performance is not a guide to future returns, structured products have proved over the years to protect investors’ capital “in all but the most extreme market conditions”.
ruth.gillbe@ft.com
