Value Creation Report of the Swiss Structured Products Association (SSPA): Growth rate compared to 2018 at 6% – total turnover of CHF 352 bn in 2019
Turnover for Swiss structured products of the major SSPA members increased again in 2019. With CHF 352 bn, total turnover is 6% or CHF 21 bn above the previous year’s figure. The total quarterly turnover in Q4 2019 is 6% above the previous year’s level and amounts to CHF 86 bn. Yield enhancement products continue to be the most popular investment category (48%) and increased slightly year-on-year (2018: 46%). Equity (54%) and foreign exchange (26%) continue to dominate as asset classes in 2019. Non-listed products constitute 63% of turnover in 2019 (2018: 62%). The most important currencies for structured products are USD, EUR and CHF, accounting for a total turnover share of 88%.
Zurich, 27th January 2020. Structured product value creation statistics drawn up by the Boston Consulting Group take account of listed as well as unlisted products created in Switzerland that are sold nationally as well as internationally. SSPA members Barclays Capital, Banque Cantonale Vaudoise, Commerzbank, Credit Suisse, Goldman Sachs, Julius Baer, Leonteq, Raiffeisen Switzerland, UBS, Vontobel as well as Zürcher Kantonalbank took part in the survey for the fourth quarter of 2019. They represent a majority of the Swiss market.
Performance 2019 versus 2018:
- At 352 bn, turnover is CHF 21 bn higher than the annual results for 2018 (CHF 331 bn),
with 6% growth on the previous year.
- Compared to the prior-year quarter, turnover in Q4 2019 increases 6% and reaches CHF 86 bn.
- With 48%, yield enhancement products hold the largest share of total turnover. Participation products now account for the second largest share of total turnover with 20%
(previous year: leverage products with 22%). Capital protection and leverage products reach 13% and 18% respectively.
- On a yearly basis, equity products made up more than half of the yearly turnover (54%)
while foreign exchange and fixed income products held shares of 26% and 13%
- Growing the turnover share by one percentage point to 63% compared to last year,
non-listed products dominated the yearly turnover for 2019.
- The shares of yearly turnover on the primary and on the secondary market reached the same levels as last year, 55% and 45% respectively.
- The main currencies grew their combined share of yearly turnover by 4 percentage points to 88%, USD led with 38%, EUR and CHF held 33% and 16% respectively.
SSPA President Markus Pfister on the developments in the industry: “In the ongoing low interest rate environment, yield enhancement products in particular are used by investors to generate income and strengthen the investment portfolio. For 2020, our aim is to make the interesting investment opportunities offered by structured products in a demanding market environment even better known and understood by investors.