As we cruise towards the end of 2019, I thought it might be worth highlighting one sector which has clearly demonstrated relatively low levels of volatility in terms of returns, not only over the last year but the last decade – structured products.

Ian Lowes and his colleagues at have run the numbers again on their survey of UK issued products and found that of the 1500 maturities between April 2009 and September 2019, the average annualized returns was 8.52% over an average term length of 2.09 years. 28 of the 1500 simply returned capital only with no gain and 23 plans matured with a loss – according to StructuredProductReview “that leaves 1449 produced which matured with gains – 96.6% of all maturities!”.

I realize that structured products aren’t for everyone but I do think that all those investors still putting money to work in absolute returns funds really need to think long and hard about why they don’t allocate a portion of that investment into structured products, advised by an IFA of course.

Capital at risk autocall plan maturities

1500 900 600
8.52% 8.13% 9.10%
12.21% 10.83% 13.72%
5.03% 6.05% 3.79%
23 0 23
28 9 19