Tempo Issue 33 Long Income Plan open: exceptional terms … including a 50% end of term barrier level
Tempo Issue 33 Long Income Plan open: exceptional terms … including a 50% end of term barrier level
Tempo has unveiled Issue 33 of its product suite this week, which continues to offer exceptional terms for investors, including plan options with high potential returns and / or deeply defensive conditions for generating positive returns.
Deeper / more defensive end of term barrier level
In response to the recent / current market environment, we have kept the end of term barrier level for all of the plans / plan options: from 60% (allowing a 40% fall), which was already the deepest barrier level in the market at 50% (allowing a 50% fall): this is the lowest level for any capital-at-risk structured products in the market currently.
Demand for Tempo’s plans is usually high – so please contact us swiftly if investing is of interest(plans can close early, particularly in the current environment).
THE TEMPO LONG INCOME PLAN
This email provides details of Tempo’sLong Income Plan.
Tempo’s Long Income Plan offers two options, each offering the potential for fixed income, payable quarterly, based on defensive conditions, with a memory feature.
Understandably, many investors may currently be feeling like they are ‘caught between rocks and hard places’, in the search for investments which they think will deliver viable future returns, with attractive risk / return profiles.
This is particularly so for savers and investors seeking income.
Highlighting the plight for savers and investors looking for income, despite recent increases, NS&I and deposit rates remain negligible and the yield on much of fixed income / bonds despite recent increased remains relatively low, with some clear potential risks to capital (e.g. rising inflation): increases in bond yields come with falls in bond prices.
In a ‘lower and slower for (much?!) longer’ environment, we certainly think that the Long Income Plan presents a viable option and potential solution for professionally advised savers and investors seeking income.
As always, please see the full plan literature for full details of the plan and the features, terms and conditions, including the risks.
MORE ABOUT THE TEMPO LONG INCOME PLAN
Tempo’s Long Income Plan provides two investment options, each offering the potential for regular fixed income, payable quarterly, based on a choice of defensive conditions, with an innovative memory feature, and opportunities for automatic early maturity from the 3rd anniversary.
The potential income for each option of Tempo’s LIP are::
> LIP1 is designed to pay income of 6.00% p.a., if the FTSE 100 FDEW EWFD is at or above 60% of its start level, allowing the index to fall by 40%, with the benefit of the memory feature.
> LIP2 is designed to pay income of 7.05% p.a., if the FTSE 100 FDEW EWFD is at or above 80% of its start level, allowing the index to fall by 20%, with the benefit of the memory feature.
IMPORTANT POINTS REGARDING THE FTSE 100 EWFD | TARGET MARKET
The Tempo plans link to the FTSE 100 EWFD.
The FTSE 100 EWFD was developed by FTSE Russell with the aim of helping investment banks offer improved terms on structured products for investors.
Improved terms can include: lower end of term barriers; lower conditions for generating positive returns; and higher potential returns.
Société Générale have an exclusive license with FTSE Russell to use the FTSE 100 EWFD. And Tempo have agreed exclusivity to use the index in their plans with Société Générale.
It should be noted that the FTSE 100 EWFD will perform differently to the FTSE 100, due to the equal weighting and fixed dividend. This means that the returns from plans linked to it might be higher or lower than the returns from a similar product linked to the FTSE 100.
Neither equally weighted nor market capitalisation weighted indexes are better or worse than the other. Each offers a different approach and has different merits: risks and returns will be different for each and will depend on the future stock market environment and the performance of the companies in each index.
While the fixed dividend can help provide higher potential returns or lower risks for structured products, it can affect the level of the FTSE 100 EWFD negatively, when the fixed dividend is higher than the level of dividends being paid by companies in the index.
It is important to carefully consider the current level of the FTSE 100 EWFD, the level of its fixed dividend and the outlook for its future level.
Importantly, Tempo have identified the target market for investors in Issue 32 as investors who have a positive view of the future level of the FTSE 100 EWFD, over the medium to long term.
Information about the FTSE 100 EWFD can be found in the plan brochures.
You can find the level of the FTSE 100 EWFD by visiting the ft.com website:
ALL OF TEMPO’S PRODUCTS ARE ‘DELIBERATELY DEFENSIVE’
Tempo’s products are described as ‘deliberately defensive’, meaning that they are all designed so that they can generate some or all of their returns without requiring the market index which they are linked to, to rise, with a defined level of protection should the market index fall.
Tempo’s products benefit from the firm’s operational strength and rigorous approach to governance, are backed by strong issuers / counterparties, and are based on a single index, with a deep end-of-term barrier.
These are the Tempo hallmarks.
We think this approach has real merits and can add real value for investors in balanced and diversified portfolios, in the current market environment.
THE UNIQUE TEMPO PLEDGE ‘STATED TERMS OR BETTER’ …
Tempo’s plans come with their fabulous ‘Stated terms or better‘ pledge.
This unique feature allows Tempo to increase the terms of a plan above those stated in brochures, if the stock market and other factors during an offer period mean that they can do so.
For example, while the Long Income Plan brochure details option 1 as offering 6.55% p.a., if stock market movement and other factors mean that Tempo can increase this further during the offer period, the actual terms may be increased, which would be confirmed following the start date.
What’s not to love about this great feature, which only Tempo offers!
DON’T FORGET THE RISKS
As with all forms of investment there are risks involved.
Structured products are not suitable for everyone: in addition to understanding the features and benefits investors also need to understand the risks and limitations:
structured products present counterparty risk, which needs to be understood and accepted: the potential returns of a structured product and the repayment of money invested usually depend on the financial stability of the issuer and counterparty throughout the investment term
the level of return a structured product generates may be capped and / or less than the level of return generated by direct investment in the stock market or via active or passive funds
the terms of structured products can predefine what can be expected at maturity and at certain other dates, such as potential ‘kick-out’ and early maturity dates: but these terms do not apply during the investment term
the value of structured products during the investment term may be affected by various factors: while accessing an investment is usually possible, during normal market conditions, this is not guaranteed
past performance is not a reliable indicator of or guide to future performance and should not be relied upon, particularly in isolation: the value of investments and the income from them can go down as well as up
capital is at risk and investors could lose some or all of their capital
Please ensure that you view the plan documents for full details of the features and the risks.
Our advice is always to diversify across different products, from different plan managers, with different counterparties and different plan features.
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.
