Tempo unveils Issue 19 of its product suite, Yes, once again, we are splitting details of Tempo’s product suite launch into separate emails, because the stand-out terms of Tempo’s products continue to deserve special attention.
But also once again, before we tell you more about the Tempo plans, we’d like to provide some general points regarding portfolio construction and diversification considerations, in light of the market backdrop and the merits and benefits of including structured products in portfolios …
Portfolio construction and diversification considerations …
> While there have been material gains in markets since the lows seen following the outbreak of Covid-19, and there is anticipation of potential further upside, possibly focused on certain sectors which may be beneficiaries of a ‘K’ shaped recovery coming out of Covid-19, it’s important to remember that the news / outlook for much of the global economy and many major markets wasn’t too bright before Covid-19, and it’s difficult to think that the outlook now is anything other than markedly more challenging.
> Recent / current increases in the yield on some areas of fixed income / bonds, sparked by concerns about inflation, have highlighted the challenges, not least for bonds, with yields remaining at or close to historic lows, which continues to signal a ‘lower and slower for (much!) longer’ environment.
> Importantly, the rise in bond yields means capital losses have been experienced on bonds, highlighting why many commentators have been suggesting that bonds may currently present ‘return free risk’ … which is certainly something to think about!
> A low returns environment could present significant portfolio construction challenges for advisers and investors … particularly if portfolio diversification is limited to just active and passive fund management, and asset class and geography.
> Portfolio construction / diversification considerations are undoubtedly becoming increasingly important, with increasing questions re whether 60:40 equity / bond portfolios can be expected to do what they’re supposed to do in the years ahead, with the challenges facing both equities and bonds in the foreseeable future.
A recent article in the Financial Times last weekend summed up some of the points:
Financial Times – ‘‘Bond turmoil heralds end of standard portfolio’’:
https://www.ft.com/content/1bf02b3c-fc53-4d65-8fc5-fa6875ab5a00
Access to a recording of a recent Tempo video webinar:
‘‘SPs: Need; Evidence: & USPs’’
Tempo presents live video webinars for professional advisers, to advance working knowledge and understanding of structured products.
In December, Tempo focused on ’portfolio construction considerations for a challenging and potentially low returns investment environment’, drawing attention to the need for advisers and investors to consider different types of investment, specifically including structured products.
Tempo have kindly agreed to allow access to the recording, for Best Price clients, which you can do via the following link. However, PLEASE NOTE the following important explanation regarding accessing and viewing the webinar:
Tempo video webinars / presentations are designed specifically for and directed only at Professional Advisers. They are not complied by Tempo for use with end investors / Retail Clients. In particular, the video webinars / presentations use language and make some points which the average end investor / Retail Client may not understand.
However, as Best Price believe that allowing our clients to see the video webinars / presentations might add value, as part of the services we offer to our clients, we have agreed with Tempo that we can provide access to the recordings. We think that you may find them of interest but do please note that they are not designed for end investors and are not for onward distribution.
Tempo video webinar recording:
https://attendee.gotowebinar.com/recording/5329361858658331915
> If you have any questions regarding the webinar content, please let us know: we would be pleased to discuss them with you.
> We are also looking to arrange a live and interactive ‘Zoom’ video call with Chris Taylor, Global Head of Tempo, talking and answering questions from Best Price clients.
Recognising the USPs of structured products: particularly in the current environment…
> To our minds, optimal portfolio diversification needs to include consideration of different types of investment, which can do different things, for different reasons, in different ways, at different times. This is what diversification is all about: cue including structured products in portfolios!
> Structured products can do things which neither active nor passive fund management can do, including being designed to generate positive returns without requiring markets to rise, with a defined deep level of protection if they should fall … and they do it all by contract: offering ‘alpha by contract’, as an alternative and / or complement to alpha by active fund management and / or beta by passive fund management.
And the comprehensive and granular facts about UK retail structured products’ performance their virtues and merits, and the efficacy of including them in diversified and balanced portfolios.
The Tempo plans: Issue 19 continues to offer exceptional terms …
Issue 19 of Tempo’s product suite continues to offer exceptional terms, across each of its 3 plans and 6 options.
Tempo’s focus is on ‘deliberately defensive’ products, which means that ALL of its plans and options are designed to increase the likelihood of positive returns being generated, and to decrease the likelihood of capital losses being experienced.
Sounds eminently sensible to us … especially at this time …. hopefully to you too!
Details for each of the Tempo plans will follow …
Three separate emails will follow, providing details for each of the Tempo plans.
As always, please see the full plan literature for full details of these plans and the features, terms and conditions, including the risks.
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.
Tempo’s products can only be accessed with advice.
Demand for Tempo’s plans has been very high recently, resulting in some of our clients missing out on the initial terms on offer, despite moving quickly!
If you are interested to invest in any of the Tempo plans in Issue 19, we would certainly suggest early contact, in order to try to ensure availability and access.
Please contact us to discuss any aspect of these products.
Best Regards.
Richard and the Best Price FS Team