Structured products had their worst year since 2004, despite more than two-thirds (69.4%) providing investors with positive returns and just 6.8% returning a loss, a report from Lowes Financial Management has revealed.
Last year was a volatile one for stockmarkets, in particular the FTSE 100, thanks to the coronavirus. That resulted in average annualised returns for all structured products maturing in 2020 of 3.5%, their lowest level since 2004 and well below 2019's 5.7% return, the latest structured product annual performance review from Lowes showed. The average annualised return for the past decade has been 6.3%. Further, 16 of 235 products maturing in 2020 realised a capital loss for investors, versus four loss-making maturities from 334 in 2019. However, that meant 163 of the 235 products ge...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
