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Email 3 of 4: The Tempo (Issue 20) Long Growth & Kick-Out Plan Long Growth & Kick-Out Plan- Question: If you think future market growth is difficult to predict, and you think it might be important to find investments which can turn potentially low returns from the market into viable returns in your portfolio, how can you turn future market growth of just 1% per year into a double-digit annual return … and potentially more than double your investment over 10 years (by legally binding contract / ‘alpha by contract’)? Answer: Take a leaf out of Sir Alan Sugar’s approach and consider firing your active fund manager and ‘hiring’ the Tempo Long Growth & Kick-Out Plan!! Please read on for full details of this exceptional plan …
You can find a summary of the Long Growth & Kick-Out Plan and links to the full details below, including details of comparable products and our analysis of the potential returns … The end of term barrier level for the Long Growth & Kick-Out Plan is set at 50% (allowing a 50% fall) over the next decade: the lowest level for any capital at risk product currently available! AND this ‘2 strategies in 1’ plan combines a kick-out strategy at year 5 with a defensive super tracker at year 10 and provides the potential for higher potential returns than comparable kick-out products in the market! As always, please see the full plan literature for full details of the plan and the features, terms and conditions, including the risks. PLEASE NOTE: Tempo has now launched Issue 20 of its product suite. You can find a summary of the Long Growth & Kick-Out Plan and links to the full details below, including details of comparable products and our analysis of the potential returns … The end of term barrier level for the Long Growth & Kick-Out Plan is set at 50% (allowing a 50% fall) over the next decade: the lowest level for any capital at risk product currently available! AND this ‘2 strategies in 1’ plan combines a kick-out strategy at year 5 with a defensive super tracker at year 10 and provides the potential for higher potential returns than comparable kick-out products in the market! As always, please see the full plan literature for full details of the plan and the features, terms and conditions, including the risks. PLEASE NOTE: Issue 20 of Tempo’s product suite has a short 3-week only offer period, closing on Friday 7 May, ahead of the start (‘strike’) date on Friday 14 May (unless it closes early). Demand for Tempo’s plans has been very high recently, so please contact us swiftly if investing is of interest.
Tempo’s Long Growth & Kick-Out Plan is the only product of its kind in the market, uniquely combing a kick-out strategy at year 5 with a defensive ‘super tracker’ at year 10, offering ‘2 strategies in 1 plan’ with exceptional growth potential:
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, than this unique and innovative plan. > The potential kick-out return of 57.50% at Y5 will be achieved if the FTSE 100 FDEW is 5% higher than the start level: equivalent to 11.5% p.a. simple. Notably, this is more than any comparable kick-out products in the market, including Tempo’s own LKO3: albeit also noting that the LGKO kick-out return requires the index to have risen by 5% at year 5. > The maximum growth return of 120% at Y10 will be achieved if the FTSE 100 FDEW is 10% higher than the start level: equivalent to 12% p.a. simple (and more than doubling an investment over the 10 year term). Both strategies offer the potential for exceptional potential returns, from a market rise of just 1% per year. Tempo’s LGKO is a great example of structured products offering ‘alpha by contract’, in a low returns investment environment, in ways which neither active nor passive funds can offer. So, re the question: How can you turn future market growth of just 1% per year into a double digit annual return … and potentially more than double your investment over 10 years (by legally binding contract / ‘alpha by contract’)? Answer: Yes, take a leaf out of Sir Alan Sugar’ s book… and fire your active fund manager and invest in the Tempo Long Growth & Kick-Out Plan!
This Tempo plan is unique, in combining 2 strategies in 1 plan … and we love it! The potential return from the kick-out feature at the 5th anniversary is better than the potential return of all comparable kick-out plans available (including Tempo’s own LKO3), and the plan also includes the defensive super tracker strategy, at the 10th anniversary. The following section provides brief details of other currently available products and our analysis of the potential returns on offer currently (as at 08.03.21): ‘AT OR ABOVE START LEVEL’ (‘ATM’) KICK-OUT PRODUCTS TEMPO LGKO … There are currently 12 kick-out products which require a single index to be at or above the start level, including Tempo’s LKO3 and 3 above at-the-money (‘>atm’) single index kick-out products, (of which have a higher condition, which requires the index to have risen). > Tempo’s LKO3 offers 10.0% p.a., with an at or above start level condition throughout the investment term. > However, Tempo’s LGKO offers a potential kick-out return of 57.50% at year 5, which is equivalent to 11.5.0% p.a. And the plan also includes the 2nd strategy, offering a maximum potential return at year 10 of 120% (plus capital), which is equivalent to 12% p.a. > Re comparable* ‘at or above the start level’ products, the average potential kick-out return of the 11 other kick-out products (10 of which are linked to the FTSE 100; and 1 of which is linked to the FTSE CSDI), excluding Tempo’s LKO3 or LGKO, is just 7.38% p.a. However, of the other 11 kick-out products, 9 have have higher end of term barrier conditions. The average potential kick-out return of the 3 >atm kick-out products (2 of which are linked to the FTSE 100; and 1 of which is linked to the FTSE CSDI), is 9.27% p.a. However, the >atm kick-out products both have higher end of term barrier conditions. Of the 3 other >atm kick-out products, 2 have a shorter maximum term than Tempo’s LKO plan (the maximum term for the Tempo LKO/LGKO plans are 10 years) and all offer a first kick-out opportunity earlier than the third year anniversary. Notably, the potential kick-out return of Tempo’s LGKO betters the potential kick-out return of all other provider’s index-linked kick-out products of any type, including atm, >atm and dual index products. *Comparisons to other products is based on analysis of all products in the market as at 16.04.21, 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. 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 plan linked to the FTSE 100. Please also see the section below with further important information regarding the FTSE 100 FDEW.
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 Growth & Kick-Out Plan brochure details that the potential return is 57.50% at year 5, if stock market movement and other factors mean that Tempo can increase this further during the offer period, the actual terms may be increased to, say, 75%, which would be confirmed following the start date. In Issue 12, LGA2 was ‘supposed’ to offer 107.5%, stated in the plan brochure, but this was increased to 175% (equivalent to 35% p.a.). This would nearly triple capital, i.e. £100,000 invested would mean £275,000 returned (including capital). And if the FTSE 100 FDEW does not close at or above 110% of the start level on the 5th anniversary, the return generated on the end date was also increased from 6 times the amount by which the FTSE 100 FDEW closes above 90% of the start level, to 10 times, with the maximum potential return increased from the 180%, stated in the plan brochure, to 300% (plus capital back) at year 10 (equivalent to 30% p.a.). This would quadruple capital, i.e. £100,000 invested would mean £400,000 returned (including capital). What’s not to love about this great feature, which only Tempo offers?!
As we’ve explained previously, Tempo have drawn on strong team knowledge of indexation and a research-based approach to index selection, with their plans using an equal weight, fixed dividend version of the FTSE 100, known as the FTSE 100 FDEW. The FTSE 100 FDEW was developed by FTSE Russell specifically with the aim of helping investment banks offer improved terms (e.g. lower end of term barriers; lower conditions for generating positive returns; and higher potential returns) on structured products. Société Générale have an exclusive license with FTSE Russell to use the FTSE 100 FDEW. And Tempo have agreed exclusivity to use the index in their plans with Société Générale However, it should be noted that the FTSE 100 FDEW 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 FDEW 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 FDEW, the level of its fixed dividend and the outlook for its future level. Importantly, Tempo have identified the target market for investors in Issue 20 as investors who have a positive view of the future level of the FTSE 100 FDEW, over the medium to long term. Information about the FTSE 100 FDEW can be found in the plan brochures.
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.
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.
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.
To access the literature for these products: Click here – https://bestpricefs.co.uk/tempo-structured-products/
Issue 20 of Tempo’s product suite has a short 3-week only offer period, closing on Friday 7 May, ahead of the start (‘strike’) date on Friday 14 May (unless it closes early). So, we’d certainly suggest early contact if you are interested to invest in Issue 20, in order to try to ensure availability and access. Please contact us to discuss any aspect of these products. Best Regards. Best Price FS Team |
Tempo has now launched Issue 20 of its product suite.
