CompareStructuredProducts.com - 01/07/2021
2021’s opening six months have facilitated almost the same number of maturities (229) than in entire of 2020 (235), including some favorable performances and ultimately successful maturities for investors in a series of Investec / Lowes 8:8 Plans.
In January 2021 the first 8:8 Plan matured with an annualised return of 6.99% over a three-year term; eight more 8:8 maturities followed across Q2 earning investors an average annualised return of 7.43% over an average 2.4 year term.
| Product Name | Maturity Date | Term (years) | FTSE 100 Change | 8:8 Annualised Returns |
| Investec / Lowes 8:8 Plan 7 | 28/01/2021 | 2 | -3.27% | 7.69% |
| Investec / Lowes 8:8 Plan 1 | 08/03/2021 | 3 | -5.72% | 6.99% |
| Investec / Lowes 8:8 Plan 8 | 11/03/2021 | 2 | -5.52% | 8.15% |
| Investec / Lowes 8:8 Plan 2 | 19/04/2021 | 3 | -4.34% | 7.42% |
| Investec / Lowes 8:8 Plan 5 | 22/04/2021 | 2.5 | -1.48% | 7.56% |
| Investec / Lowes 8:8 Plan 9 | 29/04/2021 | 2 | -6.44% | 7.32% | Investec / Lowes 8:8 Plan 6 | 03/06/2021 | 2.5 | 0.03% | 7.56% |
| Investec / Lowes 8:8 Plan 10 | 17/06/2021 | 2 | -2.77% | 6.76% |
| Investec / Lowes 8:8 Plan 3 | 28/06/2021 | 3 | -6.17% | 6.98% |
The nine plans collectively achieved an average annualised return of 7.38% significantly outperforming the FTSE 100 total return over their respective durations.
The defensive feature incorporated in the 8:8 Plan meant that maturities were triggered despite the FTSE 100 Index being below the initial index level for all but one of the nine plans. A function of the 8:8 Plans is that they allow for a gain to be secured in flat and falling markets so long as the index is no more than 8% below the Initial Index Level on the relevant observation date. An average capital gain of 19.02% despite the FTSE 100 Index being down by an average -3.96% throughout the terms of the products illustrates a benefit of structured products over alternative passive investments such as tracker funds; gains can be achieved even in falling markets.
The latest 8:8 Plan, now offered through Mariana, maintains a defensive feature, though in a slightly different format. Full plan details can be found here., though our Plan summary is as below.
- Underlying Index: FTSE CSDI (The FTSE 100 can be followed as a rough proxy)
- Investment start date: 13th August 2021
- First possible maturity on 2nd anniversary and every six months thereafter
- Early maturity triggered by the index being at or above the initial index level on any of the first four observations or, no more than 8% below the initial index level from the 4th anniversary onwards
- 13% gain payable if maturity triggered on 2nd anniversary
- 3.25% more (6.5% per year - not compounded) for each further six months. i.e., maturity at three years & six months pays 22.75%
- 8-year maximum term
- Capital at risk barrier: 65% of the 13th August 2021 index level
- Capital at risk barrier observation date: 13th August 2029 (only if not matured sooner)
- Counterparty: Citigroup Global Markets: ‘A+’ (Strong) rated by major credit rating agencies
A full list of all 8:8 and 10:10 Plan maturities can be observed here, along with all issues currently open for investment.
Structured investments put capital at risk. Past performance is not a guide to the future. Disclosure of Interests: Lowes has provided input into the concept, development, promotion and distribution of the 8:8 Plan. The provider’s charges/fees are built into the terms of the investment - Lowes has a commercial interest in the 8:8 Plan as a result of its involvement in its development and promotion. All Plan returns are stated after allowing for the provider’s charges/fees. Where Lowes is involved in advice on or the intermediation of this investment to retail clients, it will not receive any payment from Mariana for its input.
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