Ripe for investors?
The performance of early-vintage structured products has proven far from stellar and many investors have lost capital on an inflation-adjusted basis. With billions of dollars of these instruments due to mature over the coming months, will retail investors move their capital elsewhere? Kathleen Kearney reports
Dealers estimate that retail structured products worth at least $2 billion are due to mature in the coming 12 months in Hong Kong alone. And many investors will receive little more than the principal they invested back at the start of the decade for their efforts - indeed, a fair number of them will be worse off on an inflation-adjusted basis.
These early structured products, sold between 2001 and 2003, offered a typical five-year lock-up that provided a yield of 2.5-3%. This represented medium
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