Structured product returns fall in 2020 despite continued success

Almost three-quarters generated positive returns

David Brenchley
clock • 2 min read

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

  • 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.

Join

 

Already a Professional Adviser member?

Login

More on Structured Products

Structured product performance analysis tool launched for advisers

Free for advisers

clock 02 March 2020 • 2 min read

Nick Johal: Four risks associated with structured products?

‘Too good to be true?’

Nick Johal
clock 05 July 2019 • 4 min read

Nick Johal: Not 'liking' structured products makes no intuitive sense

A contract, not an asset class

Nick Johal
clock 11 June 2019 • 4 min read