Swiss structured products turnover down in 2010

While November was a good month for structured products in Switzerland, volumes fell 4.39% during the period from January to October 2010.

Structured products see a fall in Switzerland

Swiss structured products volumes fell by 4.39% between January and October 2010, with the Sfr3.23 billion (€2.64 billion) of turnover in December 2010 reflecting a 23.46% drop from the previous month's figure, according to Scoach.

The fall was in contrast to a rise in Swiss deposits and other asset classes, with investment funds and shares increasing in popularity. There was also a marked rise in private client business, which accounted for more than a third of total client deposits. The Swiss Structured Products Association (SSPS) estimates that more than half of all structured products are placed by investment managers acting on behalf of private investors.

However, total turnover increased for the first time since 2007, reaching Sfr39.73 billion. In particular, yield enhancement, capital protected, and leveraged products all increased their share of the market.

November saw the best volumes of the year in structured products as turnover reached Sfr4.22 billion. The subsequent fall in December could be down to the large number of products that were de-listed after expiration. However, Scoach still recorded its highest number of listed products, with 30,351 active on the exchange.

In December 2010, Bank Vontobel had 25.97% of structured products market share in Switzerland measured by turnover, followed by ZKB (20.86%), UBS (10.90%), Bank Julius Baer (9.98%) and Deutsche Bank (9.85%). In the fourth quarter, only Deutsche and UBS lost market share, with UBS seeing the biggest drop, of 24.46%.