CompareStructuredProducts.com - 09/10/2024
In the third quarter of 2024 the FTSE rose 0.89%, maintaining a level that ensures a high number of structured product maturities. Over 83% of Q3 maturities were solely linked to the FTSE 100 (or FTSE CSDI), these elevated levels have ensured a high volume of early maturities for autocalls and other plans with early calls. Other commonly used indices that are often used in conjunction with the FTSE also remain at or near all-time high levels, again warranting ample positive maturities.
Although slightly down on Q2, Q3 produced 190 UK retail structured plan maturities, with all but two delivering positive results for investors. The only maturities to return a loss were in fact ‘auto put’ plans that would return positive results if the underlying indices fell over the investment term. Two maturities returned capital only but did not expose investors to risk of loss as they were deposit-based contracts linked to the ‘redundant’ Investec EVEN 30 Index.
The 190 capital at risk plans realising average annualised returns of 7.40% over an average term of 2.7 years.
Q3 2024 Structured product maturites
| Capital at risk | Deposit based | |
| Number of maturities | 190 | 9 |
| No. returning positively | 188 | 7 |
| No. returning capital only | 0 | 2 |
| No. realising a loss | 2 | 0 |
| Average term (years) | 2.71 | 5.78 |
| Average annualised return | 7.40% | 2.84% |
| Avg. upper quartile | 9.81% | 4.86% |
| Avg. lower quartile | 4.44% | 0.00% |
Of the 190 capital at risk maturities 5 autocalls ran their full term benefitting from six years’ worth of snowballing coupons.
Q3 2024 best performing structured product maturities by annualised return
| Provider | Plan Name | Counterparty | Index Link | Maturity Date | Investment term (years) | Index Movement | Final Gain | Annualised Return |
| Tempo | FTSE 100 FDEW Long Growth Accelerator Plan August 2019 - Option 1 | Société Générale | FTSE 100 EWFD | 30/08/2024 | 5 | 3.55% | 80.00% | 12.46% |
| Mariana | FTSE 150 Kick Out Plan August 2020 | Natixis | FTSE 150 EWDR | 21/08/2024 | 4 | 12.58% | 60.00% | 12.46% |
| Mariana | 10:10 Plan September 2022 (Option 3) | Morgan Stanley & Co. International | FTSE CSDI | 23/09/2024 | 2 | 17.51% | 25.50% | 12.01% |
| Walker Crips | UK & US Kick-out Plan (MS135) | Morgan Stanley & Co. International | FTSE 100 & S&P 500 |
05/08/2024 | 1 | 5.87% 15.82% |
12.00% | 11.93% |
| Tempo | FTSE 100 FDEW Long Kick-Out Plan August 2019 - Option 3 | Société Générale | FTSE 100 EWFD | 30/08/2024 | 5 | 3.55% | 73.50% | 11.64% |
The table above demonstrates that the risker structures can reward investors with the highest returns – provided the markets are on side. Dual index and Hurdle contacts can often entice investors with high headline coupons – common sense should prevail when using these, ensuring adequate overall portfolio diversification.
Over Q3, there were 33 Lowes ‘preferred’ maturities, 32 of which were capital at risk plans, returning an average annualised return of 8.45% across an average duration of 3.3 years – outperforming the sector average by 1.05%.
Sources: CompareStructuredProducts.com, Investing.com
Structured Investments put capital at risk.
Past performance is not indictive of future results.
© CompareStructuredProducts.com is a trading style of Lowes Financial Management, authorised and regulated by the Financial Conduct Authority
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