FTSE 100-linked structured products dominate in Q2

Added 12th July 2016

Of the 54 structured products linked to the FTSE 100 that matured in Q2, 52 made a gain the latest research from Lowes Financial Management shows.

FTSE 100-linked structured products dominate in Q2

According to the firm, the average annualised gain for FTSE 100-linked products was 5.06%, up from the 4.92% average recorded for Q1, over an average term of 5.23 years.

There was a significant disparity between the top and bottom performers, however, with the top 25% producing an average return per annum of 8.16% (Q1: 7.58%) over an average term of 5.21 years, while fourth quartile products made 1.43% (Q1: 1.9%) over 5.08 years.

This contrasts strongly with the numbers for non-FTSE 100 products, where only seven of 19 ended the quarter with a gain.

The average annualised gains for all 73 products maturing in the second quarter was 3.89% (Q1: 3.67%) over an average term of 5.21 years.

Ian Lowes StructuredProductReview.com founder said the divergence between FTSE 100 and non-FTSE 100 products demonstrates that, while the potential is for higher rewards by linking to a measurement other than the UK's blue chip index, this comes with additional risks, “evidenced by those products linked to commodities and individual shares, which have resulted in a loss in this quarter’s maturities.  

But, he added: “We are finding many more defensive structured products are being launched into the market, possibly because of stronger demand in light of their ability to make positive returns in slightly falling market conditions.”

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Matthews Asia Funds Asia Dividend
Matthews Asia Funds Asia Dividend...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy