CompareStructuredProducts.com - 21/10/2020
With the effects of the preceding periods still hitting hard, not least Q1 2020, Q3 has seemed to be something of a non-event for markets, with the FTSE 100 Index beginning at 6,169.74, and, after a short rally, finishing the quarter at 5,866.10, representing a fall of 4.92% across the three months1.
In terms of product maturities, the first two weeks of Q4 have encapsulated the highs and the lows of Q3, with some extraordinary performances – four Lowes ‘Preferred’ plans have matured earning average gains of 61.98%. Whilst Q3 proved to be somewhat quieter in comparison, there remain several comment worthy points to address…
42 products matured in Q3, five more than the in the previous quarter, though 66 less than in the primary quarter. As in Q2, many products failed to mature at a gain as they had struck at higher index levels than those at the maturity observation dates Of the 42, just five were autocall / kick-out contracts. The remaining autocalls that had the potential to mature during the quarter have seen their maturity deferred until next , or subsequent observations. Given that the potential returns for autocalls improve with each year that passes, with their potential for these to ultimately, significantly outperform the markets improves each year.
Of the 42 maturities, half matured achieving a positive outcome for investors, despite ongoing market turmoil. A further 18 plans simply returned original capital, albeit having protected it from market falls, which many were double digit percentage falls. Three of the 42 maturities resulted in a capital loss for investors. These were share-linked plans that we have alerted to previously as expecting to mature with a loss.
Q3 2020 maturity results. Source: CompareStructuredProducts.com
|All Products||Lowes 'Preferred'|