A structured growth product from the now-defunct UK investment firm Keydata has delivered strong returns despite the scandal that engulfed the company soon afterwards.

Dynamic Growth Plan 18, which matured in mid-August, has provided investors with a 72% yield on a 6.3% rise in the FTSE100 index over the six-year term offered by the product.

Keydata was put into administration in 2009 by the Financial Services Authority (FSA) following a tax dispute over non-compliant Isas that escalated into a Serious Fraud Office investigation, later dropped, into the disappearance of client money. Declared insolvent by the FSA, which judged that Keydata did not have the resources to meet the tax liability, 30,000 UK investors were owed £450m at the time of the collapse. Some of this has since been recouped by the Financial Services Compensation Scheme, which continues to pursue redress. Keydata's structured products book was bought by the now-defunct Merchant Capital in 2010

However, independent adviser Lowes Financial Management says the success of Dynamic Growth Plan 18 shows that the troubles of the company should not be allowed to overshadow the quality of the products.

“This Keydata plan is one of many that demonstrates how using structured products can help diversify an investment portfolio through using different investment strategies to optimise the prospects for delivering valuable returns to clients in a range of market conditions,” said Ian Lowes, managing director of Lowes. “This plan ran throughout the financial crisis and its aftermath and has delivered exceptional outperformance against the benchmark FTSE100.

“Such strong examples of the value that structured products can add to portfolios should prove a compelling reason for all advisers to be considering structured products; the benefits to investors are clear for all to see.”

Lowes added that despite the market collapse at the height of the credit crisis, the FTSE did not fall through the floor. But even if it had fallen 50% and ended the term at the same level that it had been on its last observation date, the product would still have delivered the 72% return.

The plan struck in August 2007 and matured last month, with FTSE100 closing levels of 6224.3 and 6619.6 respectively.

“In the first instance, what should be stressed here is that hearing the word ‘Keydata’ and thinking ‘failure’ is wrong,” said Thomas Hughes of StructuredProductReview.com. “Keydata structured products were not the problem, and this sort of return shows that they are still producing excellent returns.”

The product, which raised an estimated £2.37m according to SRP data, was backed by JPMorgan Chase Bank.