Structured product market to grow 20% in 2010
23 November 2009 / by Rebecca Sargent
The structured product market looks set to grow by 20 per cent next year, despite the high profile issues faced by the industry this year, OPAL has claimed.
According to the provider of structured product administration, in 2008 the structured product market grew by almost 25 per cent in the UK to £10billion, and 2009 is still on target to be a record year for structured investment plans.
In addition, OPAL predicts that there will be a move to create a new classification for ‘no risk’, ‘guaranteed’ products to ensure they do not become confused with products that have a more complicated structure.
Since Lehman Brothers collapsed last year, causing Lehman backed structured products to default, the structured product market has been under scrutiny and the Financial Services Authority is currently performing a review of the market.
Commenting, Tony Collins, managing director at OPAL comments: “2009 has been a turbulent year, but despite this, many companies see the benefits that a specific type of structured product can offer.
“I personally welcome the closer review by the FSA as this will help to create stability in the market and, more importantly, give companies the confidence to launch what are really compelling products.
“Returns of above five per cent, capital protection and protection under the FSCS give the market a healthy future,” he adds.
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© Fair Investment Company Ltd
| Product Name | ISA Option | Maximum Potential Return | Term | More Info | |
|---|---|---|---|---|---|
 |
FTSE 100 Enhanced Kick Out Plan |  |
10% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
 |
10:10 Plan | |
11% per annum |
10 years | More Info > |
| Structured investment plan with the potential to mature after years 2, 3, 4, 5, 6, 7, 8, 9 or 10. If the plan matures early it will return 11% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Step Down Kick-Out Plan | |
7.25% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 2, 3, 4, 5 or 6. If the plan matures early it will return 7.25% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Defensive Step Down Kick-Out Plan | |
6.15% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 2, 3, 4, 5 or 6. If the plan matures early it will return 6.15% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Defensive Kick-Out Plan | |
6.75% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 3, 4, 5 or 6. If the plan matures early it will return 6.75% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Kick Out Deposit Plan | |
6% per annum |
Up to 6 years |
More Info > |
| Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 5% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer. | |||||
|
6 Year Defensive Deposit Plan | |
25% at end of term |
6 years | More Info > |
| 6 year capital protected structured deposit plan which aims to return 25% if the FTSE 100 is higher than 75% of Initial Level. Also available for Cash ISA and ISA transfer. | |||||
The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
| Product Name | ISA Option | Income Yield | More Info | |
|---|---|---|---|---|
|
FTSE 100 Enhanced Income Plan | |
4.20% fixed income |
More Info > |
| TAX FREE FIXED INCOME: 5 year investment plan paying a fixed monthly income of 0.35% (equivalent to 4.20% annually). Available as a Stocks & Shares ISA, non-ISA investment and ISA transfer. | ||||
|
FTSE 100 Defensive Income Plan | |
7.20% per annum |
More Info > |
| A maximum 8 year investment plan paying a potential annual income of 7.20%. Also available for Stocks & Shares ISA and ISA transfer. | ||||
 |
FTSE Monthly Contingent Income Plan | |
6.00% per annum |
More Info > |
| Maximum 10 year structured investment plan paying a potential monthly income of 0.50% (equivalent to 6.00% annually) and the opportunity to mature quarterly from year 2 onwards. Also available as a Stocks & Shares ISA investment and ISA transfer. | ||||
Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.
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