The French structured product specialist has been delivering performances for over 16 years.

Hedios’ H Performance 58 has been redeemed early at its first opportunity.

Our structured products are linked to the largest European companies, whose valuations we continue to find attractive - Julien Vautel

The 12-year structure – issued via BNP Paribas – expired after just one year with a gain of 20%, while its underlying benchmark, the Euro iStoxx 50 Equal Weight NR Decrement 5% EUR Index, increased by only 9.05% over the period.

“We design our Gamme H-range products based on our convictions, which are themselves based on our analysis and forecasts of the financial markets,” Hedios CEO Julien Vautel (pictured) told SRP.

“Our structured products are linked to the largest European companies, whose valuations we continue to find attractive,” he said.

The H Performance range aims for high returns (over 10% per year) while offering conditional capital protection at maturity.

“We have focused on a rapid exit, aiming for a rebound of the European markets,” said Vautel.

Hedios offer consists of four product lines: H Performance, H Rendement, H Absolu and H Capital. These product lines seek to meet performance objectives, based on the level of risk acceptance.

The underlying index, which replicates the performance of the Eurostoxx 50 Equal Weight Net Return Index while assuming a constant dividend markdown, is frequently used by Hedios – represented in 29 products across all product lines, including 13 from the H Performance gamma.  

“This index fully meets our demanding criteria: it offers sectoral and geographic diversification in Europe, and it ensures a faithful representation of large European companies, strictly the same as those comprising the Eurostoxx 50 index, the benchmark for European equity markets,” said Vautel, adding that its equal-weighting method reduces risk concentration on a few stocks, while the deduction of a fixed dividend optimises the design of Hedios’ products' redemption payoffs.

“Europe is home to large companies with historically dominant positions in their sectors. We believe their valuations still have growth potential given their fundamentals.”

The SRP database registers 158 structured products distributed via Hedios – worth more than €600m and dating back to 2009. Of these 127 have expired, returning on average 11.4% pa.

“Our success stems primarily from design decisions rooted in our convictions, which have translated into performance for 16 years,” said Vautel.

All of the company’s products are targeted at retail investors in the French market.

“In France, investors seek above all simplicity and seamless investment experience, while pursuing the objective of capital appreciation,” Vautel said.

This presents several challenges: from technological challenges to modernization of tools, but also human challenges to maintain quality client support.

“At Hedios, we have made this balance a priority. Our advisors and account managers support our clients, with a daily focus on education and accessibility.

“The Gammes H Mandate allows each client to entrust us with the creation and management of their Gammes H portfolio, according to their profile, so they don't have to worry about the choice of vehicles or transaction management, while seeking to sustainably grow their wealth,” Vautel concluded.

Do you have a confidential story, tip or comment you’d like to share? Contact Us | SRP (structuredretailproducts.com)