Max Darer, Lowes Financial Management, 01/11/2023

The 1,750th FTSE 100* only linked capital at risk autocall plan to mature in the UK retail space was Meteor’s FTSE Step Down Kick Out plan September 2021 that did so on 29th September 2023. After two years in force the two options returned 10.5% and 11.6% respectively, with the FTSE 100 rising 7.36% over the same period.

This marks another milestone for the UK retail structured product sub-sector with more than 250 such autocalls maturing in the last year alone.

UK retail FTSE 100* linked capital at risk autocall maturities

Total maturities 2003 - 2023 1750
Number returning a gain 1742
Number  returning capital only 8
Number realising a loss 0
Avgerage annualised return 7.67%
Upper quartile 10.23%
Lower quartile 5.66%
Average term 2.2 years

 

Only 8 FTSE 100 only capital at risk autocalls have matured withut a gain. Between 2011-2013 these eight plans matured returning capital only, having commenced just prior to the 2008 financial crisis and the FTSE 100 had not recovered to their maturity trigger levels by their final 5th or 6th anniversary. Had these plans had maximum terms of seven years only one would have failed to produce a gain.

Collectively the maturing 1750 plans have earned average annualised returns of 7.67% over an average duration of 2.2 years with upper and lower quartiles of 10.23% and 5.66% respectively. These bank-based contracts have continued to reward investors into their now third decade of results with no signs of slowing down.

FTSE autocalls continue to reward investors’ with excellent results whilst presenting advisers natural and regular opportunities to present clients with positive performance news.

With a regular flow of FTSE autocalls being issued via 10 providers utilising 10 counterparties the sector continues to go from strength to strength.

*Including FTSE CSDI

 All data sourced from StructuredProductReview.com

 

Structured investments put capital at risk.

Past performance is not a guide to futurre results.