In positive news, we have had two trades within the Mattioli Woods Structured Products Fund (SPF) mature to strong results.
The first, linked to the performance of a UK and European index, paid a return of 16.2% after two years (8.1% per annum), a return achieved even though the average performance of the indices was down 0.03% compared to their start levels in April 2017. We often talk about how structured products can provide attractive returns when equity markets do not go up – this particular product is a great example of this. The graph below shows the performance of the structured product (in black) and the two underlying indices over the last year.
The second, linked to the performance of a UK and US index, paid a return of 8% after one year. Again, the return on this structured product was greater than the average performance of the two indices it was linked to.
Mark Fuller, Head of Structured Products at Mattioli Woods, said: "All structured products need time to pay their target return, and we hope these two returns are the first of several maturities the SPF will have in 2019, especially as we have six trades in the portfolio currently that will pay their target return in 2019 and mature early, based on current index levels.
"So far this year, more than 10% of the assets under management of the SPF has matured early, with a return of over 8% per annum."
The Mattioli Woods Structured Products Fund was launched in 2016 to provide clients with a unique way of benefiting from the less volatile returns of structured products as part of a diversified investment portfolio.
For more information, contact your Wealth Management Consultant or visit the Structured Products Fund's website.
Disclaimer: A Key Investor Information Document, Supplementary Information Document and an English language prospectus for the Structured Products Fund are available via the fund website or on request, and potential investors should consult these documents before purchasing shares in the fund. The value of investments and the income from them can fall as well as rise, and investors may not get back the full amount invested. Past performance is not a guide to the future. Any investment decisions should be taken with advice, given appropriate knowledge of the investor’s circumstances. This financial promotion is intended for UK residents only and is communicated by Mattioli Woods plc, which is authorised and regulated by the Financial Conduct Authority. The information above is based on Mattioli Woods’ current expectations and is subject to change without notice.