Structured product returns fall in 2020 despite continued success

Almost three-quarters generated positive returns

David Brenchley
Products dealing with crude oil futures were among the worst performers

Products dealing with crude oil futures were among the worst performers

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...

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