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.

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 maturities

 

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

Avg. 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.

 

Sources: StructuredProductReview.com, Investing.com

Structured Investments put capital at risk.

Past performance is not indictive of future results.