Structured product returns fall in 2020 despite continued success

Almost three-quarters generated positive returns

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