FVC produced its first in depth report on structured
product performance a year ago and we have now
updated it to the end of 2019. We include all
investment structured products on our database
that have matured over the last four years (from 1
Jan 2016 to 31 Dec 2019) and compared them to
some popular investment types that financial
advisers often recommend to their clients.
The current investment climate is challenging and
unpredictable despite some gains over recent years.
Meanwhile, investors seem to become ever more
demanding looking for capital protection, growth
and income. It is in this tough environment that
structured products have performed strongly yet
again in 2019 with no investment products losing
capital for the fourth year in a row.
The investment marketplace remains very crowded
and regulations have increased significantly in the
last few years with RDR, PRIIPs, MiFiD II and PROD
all affecting the advice process. Therefore the
ongoing service that FVC provides to assess the
market combined with this important study help
illustrate how compelling structured products
continue to be for financial advisers and their
We analysed products
maturing in the four year period from 1 January
2016 to 31 December 2019, during which time there
were a total of 1172 index based investment
products (those linked to the FTSE-100 and other
mainstream indices) maturing. These break down
into 918 capital at risk product (78% of the total)
and 254 capital protected products (22%) which
serve the two parts of the market divided by the
most fundamental investor choice – attitude to
risking any loss of capital.
None of the 1172 structured products returned
losses, and the average return was 7.24% p.a. for
capital at risk products and 4.08% p.a. for capital
protected products. The average over the entire set
of products was 6.56% p.a.. These figures are
remarkable and show how robust and reliable the
market has been. It would be almost impossible to
find any sector in any cycle from the fund world
where every single one of over 1100 funds over a
four year horizon would not have a single one losing
We believe these figures show a very strong case for the use of structured products in investor portfolios.
The full report can be accessed here.
Please contact us for permission to use this report for your adviser or professional clients