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Actual Movement (%) of the FDEW Index

A number of investment clients have asked for clarification of the movements of the FTSE 100 Fixed Dividend Equal Weight Index (FDEW) in relation to the FTSE 100.

This communication follows yesterday’s article – click the link to re-read the detail:
https://www.bestpricefs.co.uk/blog/nvestment-markets-remain-volatile/

This detail encapsulates the daily index movements of both between 15th June to 10th July:


Interestingly both have an exact ytd fall of -19.19%, so it shows similarity in movements and comparable performance, which is what needs demonstrating, rather than out-performance, which we can see has happened since launch and significantly since around the height of Covid in early April.

Adding more context around some of the key observation levels for Tempo’s current range of Plans:-


Divide by 7.4 to show if when looking at the current FTSE 100 level, if the FDEW is around ball park/similar at any given time going forwards. So taking 6095 (as an indication of the current main market index) /7.4 = 824 and it is actually 849, so ball park since launch, higher than it needs to be since launch.

So with the above guide levels in mind:

  • Long Growth Kick Out plan, LGKO, starts out with the chance to deliver positive performance if 20% down or better, so FDEW around 679, FTSE 100 around 4876!
  • The 35% step down kick out, LKO2, is still well placed to deliver 9.25% pa with the FDEW around 552, FTSE 100 approx. 4000.
  • If Income then Tempo’s Long Income Plan 2, is in a good place to deliver income coupons if  the thinking is felt comfortable of the index dropping no more than a quarter, FDEW at 637, FTSE 100 at 4571, especially with a memory feature

Of course, outcomes for markets are inherently ‘Risky’.  Tempo’s plans benefit from the deepest soft protection barrier at 40% of the starting position, which feels like a relatively hard floor, irrespective of any dividend lag.

A blend of Tempo’s plans with quality ‘long only’ funds – with the best professional advice at the Best Price (FS) is the solution.

DON’T FORGET THE RISKS

https://www.bestpricefs.co.uk/tempo-structured-products/#risks

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

Please ensure that you view the plan documents for full details of the features and the risks.

ONLY AVAILABLE WITH ADVICE 

Tempo’s products can only be accessed with advice

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

ONLY AVAILABLE WITH ADVICE … BUT WITH A SPECIAL DISCOUNTED FEE FOR ADVICE AND TERMS THIS GOOD, WHY WOULDN’T YOU …

Tempo’s products can only be accessed with advice

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

Simply get in touch if you wish to receive regulated advice in relation to the ‘suitability of the plans to meet your investment needs’.

Warmest Regards.

Best Price FS Team