France: Hedios’ focus on simplifying portfolio management pays off

SRP considered 17 structured products launched by the French structured products specialist that expired between 1 October 2023 and 30 September 2024, returning on average 14.3% pa.

2024 was a record year for Hedios.

The company continued to innovate with the launch of Mandat Gammes H, which allowed its clients to delegate the management of their Gammes H portfolio to “optimise the value of their capital”, according to Hedios CEO Julien Vautel.

It’s hard to choose just one product […] our strength lies in our rigorous approach which aims to maximise performance while clearly identifying risks

“This major progress shows our commitment to simplifying and improving our clients’ investment experience,” Vautel told SRP.

_{Left to right: Olivier Chatriot, Julien Vautel, François Delaye, and Pierre-François Laurent}

During the year, Hedios marketed 15 new autocallable products, each with a tenor of 12-years (with the exception of three products from the H Capital series that had a five-year tenor) and including nine products linked to Euro iStoxx 50 Equal Weight NR Decrement 5% EUR Index.

The latter aligns perfectly with Hedios’ strategy, according to Vautel.

“Unlike traditional indices, which weight stocks based on their free-float market capitalisation, this index equally weights its constituents hence reducing the risk of concentration on a few large companies,” he said.

The subtraction of a fixed 5.0% annual dividend, meanwhile, allows for optimising the payoffs of Gammes H by improving potential returns and the protection barrier at maturity.

“We will therefore continue to use this index […] however, we remain open to other indices that meet our high standards, particularly in terms of representing large European companies and ensuring sectoral and geographical diversification.”

These results highlight the relevance of our convictions and our ability to offer high-performing and innovative solutions

When pressed, Vautel is hesitant to highlight a product that stood out in 2024.

“It’s hard to choose just one product […] our strength lies in our rigorous approach which aims to maximise performance while clearly identifying risks,” he said.

Among the 20 products that redeemed early in 2024, there were two that particularly illustrated the effectiveness of Hedios’ discipline, according to Vautel.

The first, H Performance 36, redeemed early after its third year with a gain of 33%, while its benchmark, the S&P Euro 50 Equal Weight Synthetic 5% Price Index increased by less than 16% over the same period.

“A great example of the power of the memory effect [on the coupon],” said Vautel.

The second product, H Performance 51, autocalled after just one year with a gain of 30%, while its underlying benchmark index, which was again the S&P Euro 50 Equal Weight Synthetic 5% Price, increased by only 12.63%.

“These results highlight the relevance of our convictions and our ability to offer high-performing and innovative solutions,” said Vautel.

_{Left to right: François Delaye, Julien Vautel, Olivier Chatriot, and Pierre-François Laurent}

Goals for 2025

Julien Vautel: We have already reached an important milestone by maintaining three Gammes H products on offer at all times, compared to two previously. We now provide three simultaneous offers, including one with capital protection at maturity, to give our clients a broader choice in terms of risk and return.

Additionally, we will soon be launching a videoconferencing service, allowing clients to meet face-to-face with their advisor for more personalised support. Still, our main objective is the commercial development of our Gammes H portfolio, which represents a real added value for our clients.

Finally, we would like to expand our model to Eurozone countries, starting with Italy, where we will be opening an office in Milan.

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