CompareStructuredProducts.com - 01/11/2023
Q3 saw another 3 months of seemingly typical FTSE 100 rangebound movement, seeing closing highs and lows of 7,746.53 and 7,215.76 and ending the period just 1.07% above where it started. As dull as the FTSE was during these months, the average closing price was 7,511.26, proving to be appropriate conditions for many structured product maturities.
170 UK retail structured plans matured in Q3, 161 rewarding investors’ positively, 5 returning capital only and with 4 plans realising a loss. The 4 losses were three-stock linked plans that were all subject to the poor performance of Vodafone over their terms. 116 of the total maturities were linked solely to the FTSE 100 or FTSE CSDI with all but two returning a capital gain for investors. The two that did not realise a gain, returned invested capital in full. One of these was a deposit-based plan that did not expose investors to risk of loss. The other was a capital at risk FTSE 100 growth plan offering investors 5 times the growth in the index over the 6 years but at the end of term the FTSE 100 was 1% lower.
Q3 2023 maturities
|Capital at risk||Deposit|
|Number of maturities||156||14|
|No. returning a positively||151||10|
|No. returning capital only||1||4|
|No. returning a loss||4||0|
|Average term (years)||2.84||3.86|
|Average annualised returns||6.84%||2.15%|
|Avg. upper quartile||10.28%||4.05%|
|Avg. lower quartile||2.60%||0%|
The best five performing plans by annualised returns are summarised as below.
|Provider||Counterparty||Index link||Maturity date||Investment term (years)||Final gain||Annualised return|
|Tempo||Societe Generale||FTSE 100 EWFD||25/09/2023||3||47.70%||13.88%|
|Tempo||Societe Generale||FTSE 100 EWFD||31/07/2023||3||46.20%||13.50%|
|Meteor||Citigroup||FTSE 150 EWDR||27/07/2023||1||12.25%||12.25%|
|Meteor||Citigroup||FTSE 100 & Euro Stoxx 50||25/09/2023||1||12.00%||12.00%|
|Walker Crips||Morgan Stanley||FTSE 100 & Euro Stoxx 50||19/07/2023||4||56.00%||11.75%|
In terms of issuance, 205 plans were issued by nine different providers in Q3. The below chart shows the split of issued plans by providers in terms of the product type. Autocall plans made up 65% of issuance.
We can also see below the issuance in terms of the counterparty and the split between capital at risk and deposit-based plans, as well as four capital ‘protected’ plans from Barclays and Credit Agricole.
*by closing date
The mainstay of the UK retail structured product sector over the quarter was again capital at risk FTSE 100 (and FTSE CSDI) only autocalls, making up 45% of issued plans.
Structured investments put capital at risk
Past performance is not a guide to future results