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.”
