- ISSUE 11 OF TEMPO’S PRODUCT SUITE IS NOW LIVE
- TEMPO CONTINUES TO OFFER THE LEADING TERMS ACROSS ITS PLANS, FOR COMPARABLE PRODUCTS
- THE BEST PRICE SPECIAL OFFER OF JUST 1% (MINIMUM advice fee £300 per product per person) FOR DISCOUNTED ADVICE IS A COMPELLING CONSIDERATION FOR INVESTORS!
Tempo Structured Products has now launched Issue 11 of its product suite, with an offer period scheduled to run until Friday 21 February (unless it has to close early).
The new terms from Tempo continue to offer the leading terms in the market for comparable products.
You can find a summary of each plan and links to the full details below, including details of comparable products and our analysis of the potential returns …
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 are based on analysis of all products in the market as at 06.01.20, using FVC research reports, comparing potential returns and product features.
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.
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:
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:
This plan really is exceptional …simply put, we can’t think of any other investment fund or product which we think is more likely to deliver such strong double digit, compound returns, with a defensive risk / return profile, over the next decade, than this unique and innovative plan.
AN OVERVIEW OF AVAILABLE COMPARABLE PRODUCTS
The following section provides brief details of comparable products and our analysis of the potential returns on offer currently (as at 06.01.20):
• ‘DEFENSIVE’ KICK-OUT PRODUCTS
There are currently 10 defensive and step-down kick-out products available in the market, including Tempo’s LKO1 and LKO2.
Tempo’s LKO1 offers a potential return of 8.10% p.a., with a 90% kick-out condition throughout the investment term.
Tempo’s LKO2 offers a potential return of 7.00% p.a., with a kick-out condition which reduces by 5% p.a. to a final step-down condition of 65%.
Re comparable step-down products to LKO2, only 2 other products step down to 65% at the final year, and the average potential returns of these is just 5.75% (compared to LKO2 at 7.00%): Investec Defensive Step-Down Kick-Out Plan 24 and Meteor (BNP Paribas) Super Step-Down Kick Out Plan both offer 5.75%.
• ‘AT OR ABOVE START LEVEL’ KICK-OUT PRODUCTS
There are currently 5 kick-out products available in the market which require the index to be at or above the start level (or higher) including Tempo’s LKO3.
Tempo’s LKO3 offers a potential return of 12.40% p.a., with an at or above start level condition throughout the investment term.
The average return of the 4 other products is just 9.81%. However, notably, several of the products have higher (i.e. worse) end of term barriers. The only other at or above start level product with a 60% end of term barrier is from Investec, offering 10.00% (compared to LKO3 at 12.4%).
• TEMPO’S UNIQUE LONG GROWTH ACCELERATOR PLAN
It is also worth highlighting that option 1 of Tempo’s LGA Plan offers a potential kick-out return of 57.50% at year 5, which is equivalent to 11.50% p.a. (which is more than all at or above start level condition kick-out plans available from other providers). The maximum potential return at year 10 is 120% (plus capital).
And option 2 of the LGA Plan offers a potential kick-out return of 95% at year 5, which is equivalent to 19% p.a. (which is significantly more than all available kick-out plans, albeit requiring the index to have risen by 10%, over 5 years). The maximum potential return at year 10 is 180% (plus capital).
ALL OF TEMPO’S PRODUCTS ARE ‘DELIBERATELY DEFENSIVE’
While lots of providers do lots of defensive products, one of the things we like about Tempo is that ALL of their 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, Tempo benefits from being part of an operationally strong group, with a rigorous approach to governance, and its products are backed by strong issuers / counterparties, are based on single indexes, with deep end-of-term barriers.
These are the Tempo hallmarks: deliberately defensive structured products.
We think Tempo’s approach has real merits and that their products can add value for investors in balanced and diversified portfolios, particularly 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.
TEMPO’S PRODUCTS ARE ONLY AVAILABLE WITH ADVICE … BUT WITH A SPECIAL BEST PRICE DISCOUNTED FEE FOR ADVICE AND TERMS THIS GOOD, WHY WOULDN’T YOU …
Tempo’s products can only be accessed with advice, however unlike many ‘execution only’ discount service providers Best Price is able to offer an advised service and offers a special discount ‘Best Price’ of just 1% (minimum advice fee £300 per product per person)for doing so.
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 exceptional compared to other products available, so paying 1% (minimum advice fee £300 per product per person) for advice (as opposed to 0.5% without advice), to access products offering significantly greater potential returns, is an offer worth considering.
And just to make this offer really hard to beat … if you can find published advice services for these products at a lower cost in the UK, we’ll do it for free!
TO FIND OUT MORE
To access the literature for these products click here to go to the products area of our website:- https://www.bestpricefs.co.uk/tempo-structured-products/
Tempo is our first ‘Star Structured Product Provider’.
Demand for the Tempo products is expected to be high. Issues 9 and 10 both had to close early, due to demand. So, we’d suggest early contact if you are interested to invest in Issue 11, in order to try to ensure availability.
Please contact us to discuss any aspect of the products.
Richard and the Best Price FS Team