CompareStructuredProducts.com - 09/12/2020
Josh Mayne, Lowes Financial Management
This year stockmarkets have fallen to levels not seen since 2015, and it was around this time that we wrote an article for What Investment explaining how investors can “achieve positive returns in slightly falling markets” (WhatInvestment, 2015).
In the article, written by our colleague, Chris Brown explained investors’ psychological aversion to loss being somewhat heightened during volatile periods. During such periods investments that simply follow the market, such as tracker funds may be daunting for less optimistic investors. Chris outlined alternatives to mainstream passive investments that can generate positive returns, even under slightly negative market conditions - growth structured products.
Three ‘supertracker’ structured products were referenced. These offered a multiple of the FTSE 100 return from pre-specified reference levels. Such products often contain a defensive element, which allow for positive returns to be generated even in situations whereby the market falls over the investment term.
Given current market position, with the FTSE 100 Index down 13.75% from its opening level in 20201, it seems somewhat fitting to revisit this article and assess how these products are looking despite the market turmoil this year.
|Plan Name||Potential Growth at Maturity|