Structured Products Annual Performance Review 2019

Key Takeaways Continued

• The 266 capital-at-risk products collectively produced an average annualised return of 7.55% over an average term of 2.97 years. The upper quartile returned 9.66% per annum whereas the lower quartile returned 5.61% per annum.

• The 190 capital-at-risk products linked solely to the FTSE 100 produced an average annualised return of 7.44% over an average term of 3.01 years. The upper quartile returned 9.5% per annum, whereas the lower quartile returned 5.71% per annum.

• The 76 Lowes ‘Preferred’ capital-at-risk products linked solely to the FTSE 100 produced an average annualised return of 8.12% over an average term of 3.28 years. The upper quartile returned 10.01% per annum, whereas the lower quartile returned 6.29% per annum.

• The 69 capital ‘protected’ and deposit-based products linked solely to the FTSE 100 collectively produced an average annualised return of 4.54%. The upper quartile returned 5.77% per annum, whereas the lower quartile returned 3.36% per annum. • The Auto-call / Kick-out products made up 50.92% of all products maturing in 2018 and these ran for an average term of 2.27 years producing an average annualised return of 7.57%. • The average annualised returns from the Lowes ‘Preferred’ structured deposits was 4.81% and even the bottom quartile returned 3.04% per annum on average.

Notes

Lowes' database is maintained with details of all structured products launched in the UK that are promoted through Independent Financial Advisers and other wealth managers. It does not include private placement trades or products distributed solely through closed or restricted channels.

The ‘Stars’ are the relevant top performing plans in each sub-sector.

When referring to quartiles, we mean the average of the best / worst 25% of all respective maturities.

Past performance is not a guide to future performance.

E&OA

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