Products offering 100% capital protection claimed their highest market share in 10-years.
Fully capital-protected structured products claimed a market share of 91% in the third quarter of 2022 – up 59% from the prior year period. The figure was the highest since Q3 2012 when just under 99% of all issued products promised to return at least the nominal invested.
Total volumes of all issued products reached an estimated €310m in the quarter – down 21% year-on-year. However, average volumes, at €17.3m per product, increased compared to Q3 2021 when products sold on average €14.6m.
The 14 products that offered 100% protection were linked to the interest rates (nine), single equity indices (three), share baskets and managed funds (one each).
The former sold the most, collecting a combined €230m, including €62m invested in Belfius Financing Company (LU) Active Interest 09/2030, an eight-year steepener linked to the spread between the 30-year EUR constant maturity swap (CMS) rate and the two-year EUR CMS rate.
Deutsche was the manufacturer behind Green Note Fund Opportunity Coupon NOK 2028, which was the only fund-linked product. It was tied to the RobecoSAM Sustainable Water Equities D EUR Fund and collected NOK47.5m (€4.6m) during its subscription period.
Partially protected products, which captured almost 50% of the Belgian market in Q3 2021, had to make do with a meagre 1.3% this time around. In fact, only one such product was issued in the quarter. It was Belfius Financing Company (LU) Re=New Plastic 95 08/2026, a four-year medium-term note on the Solactive ISS ESG Future of Plastic Enhanced EUR 5% AR Index that sold €3.9m at inception. It returns a minimum of 95% at maturity.
The three capital-at-risk products gathered a market share of 7.7% – down 8.7% YoY. All three were issued on the paper of Belfius Financing Company.
The products in this sample are public offers only.