Equities slump could favour defensive structured products

Several FTSE 100-linked products with defensive strike values – starting values set at less than 100% of the index’s value on the date the product prices – have been offered to the UK market recently, which is apt timing for investors looking to make gains in retreating markets

Tim Mortimer, Future Value Consultants

Tim Mortimer is managing director of Future Value Consultants

As global equities enter their most sustained slump of recent years, investors might be forgiven for taking a step back from the market and allowing it to draw breath. But those looking to profit from limited growth in blue-chip equities – or even modest declines – could profit by using structured products with defensive strikes – strike levels that are lower than 100% of the initial value of the underlying.

Defensive products allow