Tempo Structured Products has now launched Issue 10 of its product suite, with an offer period scheduled to run until Friday 29 November – unless it has to close early: in the current market environment, interested investors are advised to consider investing as early as possible in order to ensure availability.
The new terms from Tempo continue to offer exceptional rates for both plans and all five investment options.
As the following table highlights, the terms for Issue 10 offer very close to some of the best rates ever offered over previous issues (which is due to recent stock market volatility and index level) for the exact same products:
For example, option 3 of the Long Kick-Out Plan is offering 4.65% p.a. more now, than it was in June; and option 2 of the Long Growth Accelerator Plan is offering an incredible 62.5% at Y5 more now (equal to 12.5% p.a.), than in June.
Issue 10 clearly presents exceptional opportunities for clients to take advantage of Tempo’s current rates.
Notably, the terms from Tempo offer investors the best potential returns of any comparable* products currently available. For example:
>> There are currently 9 kick-out products which require the index to be at or above 100% of the index start level. Option 3 of Tempo’s Long Kick-Out Plan offers 17.25%, while the average potential return of the other 8 products is just 10.71%. However, some of the other products require the market to be at 105% of the index start level (in other words worse) and / or have higher (in other words worse) end of term barrier levels. The average potential return of the other products with the same conditions as the Tempo product is just 10.25% (compared to 17.55% for option 3 of the Tempo Long Kick-Out Plan).
> In addition, option 1 of Tempo’s Long Growth Accelerator Plan, which includes a kick-out feature, offers an even higher potential return of 100% at year 5, which is equivalent to 20% p.a. (which is more than all kick-outs, including its own), while option 2 offers an incredible 165% at year 5, which is equivalent to an astonishing 33% p.a. (albeit requiring the index to have risen by 10%, over 5 years).
Of course, and as always, please see the full plan literature for full details of these plans and the features, terms and conditions, including the risks.
Comparisons to other products is based on analysis of products in the market as at 22.10.19, using FVC research reports, comparing potential returns and product features.
It should be noted that the Tempo plans use an equal weight, fixed dividend version of the FTSE 100, known as the FTSE 100 FDEW. This was developed by FTSE Russell specifically with the aim of helping investment banks produce better terms on structured products. However, it should be noted that the FTSE 100 FDEW will perform differently to the FTSE 100, due to the equal weighting and the fixed dividend approach. 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.
You can find a summary of each plan and links to the full details below …
THE LONG KICK-OUT PLAN
Tempo’s Long Kick-Out Plan (counterparty Société Générale) optimises the popular kick-out strategy, through the simple step of combining a longer maximum term, with short term kick-out potential, and defensive index conditions.
The potential annual returns of each option are:
OPTION 1: OFFERS THE POTENTIAL FOR 11.25% P.A.: IF THE INDEX IS AT OR ABOVE 90% OF START LEVEL ON ANY KICK-OUT ANNIVERSARY DATE
OPTION 2: OFFERS THE POTENTIAL FOR 9.75%% P.A.: IF THE INDEX IS AT OR ABOVE A LEVEL REDUCING BY 5% P.A. TO 65% OF START LEVEL AT END DATE
OPTION 3: OFFERS THE PPOTENTIAL FOR 17.25% P.A.: IF THE INDEX IS AT OR ABOVE 100% OF START LEVEL ON ANY KICK-OUT ANNIVERSARY DATE
These are the best terms in the market for comparable kick-out products.
THE LONG GROWTH ACCELERATOR PLAN
Tempo’s Long Growth Accelerator Plan (counterparty Société Générale) is the only product of its kind in the market, combining a kick-out strategy at year 5 with a defensive ‘super tracker’ at year 10, in a ‘2 in 1’ strategy plan, which offers exceptional growth potential.
The potential returns of each option are:
OPTION 1: OFFERS THE POTENTIAL FOR 100% AT YEAR 5, IF THE INDEX IS AT OR ABOVE 100% OF START LEVEL, OR 4 X THE INDEX ABOVE 70% OF START LEVEL AT YEAR 10, TO A MAXIMUM RETURN OF 120% (PLUS CAPITAL)
OPTION 2: OFFERS THE POTENTIAL FOR 165%% AT YEAR 5, IF THE INDEX IS AT OR ABOVE 100% OF START LEVEL, OR 6 X THE INDEX ABOVE 90% OF START LEVEL AT YEAR 10, TO A MAXIMUM RETURN OF 180% (PLUS CAPITAL)
This plan really is exceptional …
For Option 1, the potential kick-out return of 100% at Y5 is equivalent to 20% p.a. simple or 14.87% p.a. compound, while the maximum growth return of 120% at Y10 is equivalent to 12% p.a. simple or 8.20% p.a. compound.
For Option 2, the potential kick-out return of 165% at Y5 is equivalent to 33% p.a. simple or 21.52% p.a. compound, while the maximum growth return of 180% at Y10 is equivalent to 18% p.a. simple or 10.84% p.a. compound.
Simply put, we can’t think of any other investment fund or product more likely to deliver such strong double digit, compound returns, with a defensive risk / return profile, than this unique and innovative plan.
ALL OF TEMPO’S PRODUCTS ARE ‘DELIBERATELY DEFENSIVE’
ALL of Tempo’s products are ‘deliberately defensive’, meaning that they are all designed so that they can generate some or all of their returns without requiring the market to rise, with a defined level of protection should the market fall.
In addition, ALL of Tempo’s products benefit from the firm’s operational strength and 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: straightforward, lower risk structured products.
We think this approach has real merits and can add real value for investors in balanced and diversified portfolios, in the current market environment.
DON’T FORGET THE 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.
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.
As we said in our introduction, the potential returns on offer from Tempo in this suite of products are so exceptional compared to all other products available that paying for advice to access products offering significantly greater potential returns is worth considering.
TO FIND OUT MORE
To access the literature for these products please click on the following link: https://www.bestpricefs.co.uk/tempo-structured-products/
Tempo is our first ‘Star Structured Product Provider’ … and the terms of Issue 10 of their product suite are exceptional!
With such exceptional terms, demand for the Tempo products is expected to be high. Issue 9 had to close early, due to demand. So, we’d suggest early contact if you are interested to invest in Issue 10.
Please contact us to discuss any aspect of the products.
Richard and the Best Price FS Team
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