12/06/2024
May recorded 65 structured product maturities, another impressive monthly total but unsurprising considering the FTSE 100 stance remaining above the 8,000 mark - opening at 8,144.13 and closed out May at 8,275.38, with closing highs of 8,445.80 over the month. With over 72% of the maturities being FTSE 100 linked, conditions were ideal for maturing autocalls. Just five autocalls last month matured on their final observation date, the rest all kicking out early due to elevated stock market levels. Three of the month’s maturities were fixed term contracts that were always destined to mature last month.
The average annualised returns for capital at risk autocalls was 8.01% over and average duration of 2.53 years, FTSE only autocalls realised just shy with 7.58% over an average term of 2.63 years.
Looking at some highlighted maturities of last month:
Provider | Product name | Index link | Maximum term (years) | Potential return | Counterparty | Index movement % | Final gain % | Annualised return |
Mariana | 10:10 Plan May 2018 (Option 2) | FTSE 100 | 10 | 10.65% | Citigroup | 9.87 | 63.9 | 8.56% |
Walker Crips | Annual Kick-out Plan (UK) Issue 5 | FTSE 100 | 6 | 9.00% | HSBC | 8.43 | 54 | 7.45% |
Meteor | FTSE Defensive Supertracker Plan May 2018 | FTSE 100 | 6 | Two times growth in index from 75% of start level - capped at 50% | BNP Paribas | 9.38 | 50 | 6.98% |
MB Structured Investments | UK Step Down Kick Out Plan (Y2 60) May 2022 | FTSE 100 | 6 | 7.10% | Barclays | 8.82 | 14.2 | 6.85% |
Tempo Strucutred Products | FTSE 100 FDEW Long Income Plan August 2020 - Option 2 | FTSE 100 FDEW | 10 | 1.6875% income per quarter if index above 85% of intial level - with memory feature | Société Générale | 13.9 | 25.3125 | 6.20% |
In all cases of the above we see that the final gain outperformed the index movements.
Whilst the FTSE has come off slightly from its mid-month highs, it is expected that June will see another month of ample maturities. The current range of products available to investors’ is such that there are plans to meet all different risk/return appetites, yet the fact of the matter is that, especially for autocall products, the built in end of term capital protection barriers should be sufficient to protect investors’ from loss in all but extreme circumstances. Common sense should prevail – a well diversified overall portfolio and sensible counterparty exposure are key for success in structured products.
To see currently available plans on offer from the providers above please visit our current products page here.
Structured investments put capital at risk.
Past performance is not indicative of future results.
Also in this section
- Maturities of the month - August 2024
- Right on time
- Product focus - August 2024
- Keep calm and zoom out
- 2,000 and counting
- Q2 2024 maturity results
- 20 years of autocall maturities
- Product focus - June 2024
- Fixed income or interest?
- Maturities of the month - May 2024
- The barrier debate - revisited
- Product focus - April 2024
- Maturities of the month - April 2024
- Time to call
- I don't believe markets are ever too high for Structured products!
- Notes on counterparty exposure
- Return of Nikkei
- Q1 2024 issuance
- Q1 2024 maturity results
- Structured Products – AAAAAGH!
- Hop in CIBC
- Re-enter Santander
- How to build a financial fortune - revisited
- Issuance in 2023
- Where's the risk?
- Questionable offerings
- Challenging the case against structured products - 'Loss of dividends'
- Navigating the investment landscape
- Challenging the case against structured products - Counterparty risk
- 6-year autocalls approaching final destination
- 1,750 FTSE capital at risk autocall maturities
- The leopard that changed her spots
- Q3 2023
- Challenging the case against structured products - Keydata
- Dilemmas for UK IFA's and the unique role of Structured Products
- 'High charges'
- Precipice bonds
- Intro
- FTSE 100 Contingent Income
- Indexing the indices
- Something different
- Investing through volatility
- 100 10:10s
- The best or worst?
- The 10%/25% 'Rule' that never was
- Structured products and the yield curve
- Fixed income: Capital at risk?
- Prospects for UK inflation - and fun with A.I!
- The Barrier Debate
- More Deposits for now
- Last of the Americans
- What if?
- Time heals all wounds, we hope...
- How to diversify portfolios using structured products?
- The Proof Is In The Pudding...
- Debunking Structured Misconceptions
- 1,500 FTSE Capital-at-Risk Autocall Maturities
- Q3 2022 Maturity Results
- What do we prefer?
- Deposits vs Capital ‘Protected’
- There’s time yet…
- Where did you invest your clients?
- A Six-Month Reflection
- Return of the Rev Con
- Happy 2nd Birthday FTSE CSDI
- Q2 2022 Maturity Results
- The best and worst yet still the best
- Critique my Suitability - Mariana 10:10 Plan June 2022 (Option 2)
- 10/10 for 55 10:10’s
- Q1 2022 Maturity Results
- 'How to build a financial fortune': a follow up
- Critique my Suitability - Mariana 10:10 Plan April 2022 (Option 2)
- 2021 Capital-at-Risk Autocall Maturity Review
- An unwelcome return...
- CSDI's First Birthday
- Bon Anniversaire
- Introducing the FTSE Custom 100 Synthetic 3.5% Fixed Dividend Index
- Q3 2021 Maturity Results
- Critique my Suitability - Mariana 10:10 Plan October 2021 (Option 2)
- Blurring the lines...
- Beware of false knowledge; it is more dangerous than ignorance
- Good news, bad news...
- Certainty is Certainly a Benefit
- Critique my Suitability - Mariana 10:10 Plan September 2021 (Option 2)
- A Twenty-Year Progression
- Q2 2021 Maturity Results
- Nine 8:8s Post Positive Returns in Falling Markets
- Critique my Suitability
- Q1 2021 Maturity Results
- Morgan Stanley’s Marvelous Maturity Medley
![giraffe icon](/images/spr-giraffe-icon.png)
Current Products
We review the UK's retail structured investment sector, providing pertinent support for Professional Advisers and relevant research tools.
View all ⟶