Structured product investors secured returns averaging over 6 per cent a year for the last three years, with no plans losing capital, a new UK report reveals.
Among a total of 632 structured product maturities, no plan returned a capital loss during 2022, while 622 plans returned gains for investors. The remaining ten were deposit-based plans which did not expose capital to risk of loss and returned the original investment.
The 632 maturities produced an annualised return of 6.44 per cent across an average investment term of 3.25 years – an increase of 0.24 per cent from 2021.
The results are from the latest Structured Products Annual Performance Review produced by Lowes Financial Management.
Max Darer, investment technician at Lowes Financial Management, says: “After the pandemic and two unpredictable years, many investors had hoped for a quieter, more stable period. However, 2022 proved to be anything but with the unfolding war in Ukraine, supply chain problems, a surge in inflation and the merry-go-round in Downing Street.
“Despite significant market volatility throughout 2022 market positions have been such to trigger a continued high level of autocall maturities.
“It’s particularly striking to see that 100 per cent of capital at risk structured investments maturing in 2022 returned a gain for investors, with the average annual return being 6.87 per cent.
“All things said and done, 2022 was another extremely positive year for the sector and those investors who took advantage of it.”
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