Structured Product Guide

Structured product performance – the proof in the pudding

Through our review service - Structured Product Review - we analysed the 235 structured products that matured in 2020. In total, 163 products (69.13%) generated positive returns for investors, a further 56 plans (23.83%) matured returning original capital and full, and the remaining 16 plans (6.81%) realised a capital loss; all of which were inherently riskier share or commodity linked products. The 235 maturing products produced an average annualised return of 3.52% across an average 4.78 years. Lowes ‘Preferred’ maturities (55 plans) outperformed the sector with average annualised returns of 4.44% across an average term of 5.27 years. The table below gives a high level summary of our findings.

Lowes ‘Preferred’ Plans

All Products

Structured Product Maturities

235

Number of Product Maturities

55

163

Number of Products that Generated Positive Returns

38

56

Number of Products that Returned Capital Only

17

16

Number of Products that Lost Capital

0

4.78

Average Duration / Term (Years)

5.27

Average Annualised Returns

3.52%

All Products

4.44%

8.59%

Upper Quartile

9.57%

-3.09%

Lower Quartile

0.00%

Source: Lowes Structured Products Annual Review 2021

Much more information on our individual product review service and on our Annual Performance Review can be found Lowes.co.uk/SPReview2021

22