| Good Afternoon
Investment Markets and product offerings We trust you are safe, healthy and coping with lockdown. We know that the crisis has been a worrying time for many – both in terms of health and their financial position. We know our investment portfolios have performed extremely well against all metrics – and the tactical reposition we made at the start of last week was a great call; lucky even – but you know what they say: The harder you work, the luckier you get!
The markets are likely to suffer with bouts of volatility for the foreseeable future – that will be driven by economic data. Making predictions is an impossible task at this point – but it seems that the Central Banks have secured the phase 1 position of liquidity to keep capital markets functioning… The position now moves on to capital strength and navigating a way out of lockdown – returning to a new normal, expecting ongoing disruption to economic activity. The Bank of England (BoE) earlier today outlined that they expect the deepest of recessions on record – which most economists had been predicting… Click the link to read more about the views of the BoE – https://www.bbc.co.uk/news/business-52566030 We know that professional scrutiny of asset allocations and investing in funds on an agnostic basis is delivering results exceptionally well on a risk adjusted basis. We are truly seeing clear water between ourselves and peers… which I’m sure our clients will be pleased to know. Investing carries risk – and there was no riskier time (to my understanding) than the period of around the 18th – 22nd March – when the markets could not ‘price’ assets – as the markets were in turmoil. Governments acted to ‘sure up’ the economy and capital markets – where a strong bounce has developed to this point (please note that volatility is expected to remain – with business failures developing in the sectors most impacted by Covid-19). Nevertheless – investing must be seen as a long term position – and where those who are truly focused on the long term and opportunity was taken… those investors have been rewarded, for the risk taken – in the context of their personal investment goals and risk tolerance. We’ve been providing details of a number of quality products that are worthy of consideration at volatile times – and the terms that are about to be launched by Tempo are truly valuable – some may say mind blowing… As a ‘heads up’ – as the plans are yet to launch – but we know that the terms have been secured we detail below the terms for your reading… The terms are expected to close early – so if you wish to invest, prompt action is best taken. Full regulatory advice is required – so that the product meets the needs of the investor – and the investor fully understands the risks of the contract shape and counterparty, etc. If the markets move considerably the plans may close early – or if the plans raise the level of capital expected extremely quickly – the plans may close early, which is why we’re providing the ‘heads up’ to potential investors. You’ll have read about the TEMPO Pledge – that was put in to practise with the last issue… the terms were superb – where a number of investors were lucky enough to enter new money into the plans. Click the link to read the previous article and an article in Wealth Adviser – https://www.wealthadviser.co/2020/04/29/285128/tempos-stated-terms-or-better-pledge-delivers-best-ever-terms-structured-products The pledge article was placed on to the website on 24th April – https://www.bestpricefs.co.uk/blog/tempo-pledge-issue-12/This is a ‘heads up’ communication – and is not intended to provide ‘advice’ to invest.
Tempo have confirmed that the plans and terms for their new tranche of products have been locked down for all 3 plans / 6 investment options and can confirm the terms for you. Firstly, Issue 13 of their product suite will provide a 30% end of term barrier on all of the plans/options, meaning that the FTSE 100 FDEW can fall up to 70% (the deepest end of term barrier they have ever arranged / and the deepest they have ever been aware of). All the plan documentation is in the process of being prepared for launch. They are aiming to unveil the new tranche on Tuesday 12 May (subject to being ready). The strike/start date will be the 19th June for the Growth plans. The following confirms the terms for each plan: Long Kick Out Plan
Long Growth Accelerator Plan
Long Income Plan
Current market levels / Target market: Following recent stock market falls, plan literature will draw attention to the importance of investors carefully considering the current level of the FTSE 100 FDEW and the level of the fixed dividend. Issue 13 is specifically designed for investors who have a positive view of the future level of the FTSE 100 FDEW, over the medium to long term Diversify across the plans and options … As per a recurring point which Tempo make, no one has a crystal ball, and therefore strongly advocate diversification across the plans and options, with the weighting of the different options changed to suit different investors’ interests, risk tolerances and appetite for potential returns. Early use … As always, but especially right now, when markets can do extraordinary things (such as move 20%+ have a bull cycle inside the space of a single month!), early use in the offer period, in terms of submitting applications and monies, is ideal. DON’T FORGET THE RISKS https://www.bestpricefs.co.uk/tempo-structured-products/#risks 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. Please ensure that you view the plan documents for full details of the features and the risks once they become available. We will circulate a follow up communication once the details are available. 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. Trust you enjoy your ‘Stay at Home’ VE Celebrations tomorrow (8th May).
Richard and Best Price FS Team |
