An inaugural review of structured products complied by Structured Product Review and Lowes Structured Investment Centre has shown that 98 per cent of structured products generated positive returns last year.
The UK market analysis also showed 424 products matured in 2015, with seven returning capital only, while just one product lost capital.
The research revealed that 80 per cent of the sectors’ maturing products are linked solely to the FTSE 100 index.
All 324 products linked solely to the FTSE 100 generated positive returns and the average term of all products maturing was 3.8 years.
Structured product review
| Headline data | 2015 | Five year |
| Number of products | 424 | 1,875 |
| Number that generated positive returns | 416 | 1,619 |
| Number that returned capital only | 7 | 214 |
| Number that lost capital | 1 | 42 |
| Average duration/term | 3.8 years | 3.7 years |
| Average annualised return | 6.8% | 6.36% |
| Average top quartile annualised return | 10.34% | 11.54% |
| Average bottom quartile annualised return | 3.75% | 0.72% |
Source: Lowes Structured Investment Centre
Adviser view
Robert Bray, partner at Imperious Capital Partners, said: “Various issues in the past made us, and some in our peer circle, wary of embracing structured products, but we keep an eye on the sector for signs of change, value and credibility.
“In an increasingly alien investment landscape, I do think as independent advisers we have a duty to be examining all options for our clients, diligently of course, and in the case of structured products, not simply assuming that current offerings are simply a repeat of past offerings.”
ruth.gillbe@ft.com
