CompareStructuredProducts.com - 19/08/2019
The seventh issue of the Mariana Capital 10:10 Plan matured on Monday, 15th of July, continuing its 100% success rate, where every option, of every issue has matured at the first opportunity. Option 1 which contained a 10% defensive feature returned 21.15%, Option 2 which required no growth in the FTSE 100 Index from strike returned 27.9% and Option 3 which required at least 10% growth in the FTSE 100 returned 35.1%.
For comparative purposes, the returns generated by the FTSE 100 and IA Targeted Absolute Return Sector are shown in the table below:
|FTSE 100 Index||FTSE 100 Total Return Index||IA Target Absolute Return Sector Average|
Since the date of the first 10:10 maturity, a total of 144 capital-at-risk retail products have matured. Of these, twenty-three were 10:10 Plans. In the table below we break down the returns generated by the sector against those generated by the Mariana Capital 10:10 Plans alone
|All Products||Mariana Capital 10:10 Plans|
|Number of Product Maturities||144||23|
|Number that generated a positive return||144||23|
|Number that returned capital only||0||0|
|Number that lost capital||0||0|
|Average Annualised Return|
The next 10:10 issue to potentially mature is the September 2016 issue, which will be monitored on the 2nd September 2019. As with previous issues, the September issue consisted of three options. One which requires the FTSE 100 Index to be at, or above 90% of the Initial Index Level (6205.14), one which requires the FTSE 100 Index to be at, or above 100% of the Initial Index Level (6894.60) and the third which requires at least 10% growth in the FTSE 100 Index, therefore meaning maturity will be triggered if the FTSE 100 is at or above 7584.06. It is admittedly therefore looking a little like Option 3 of the September issue could be the first 10:10 Plan not to mature on its first possible observation but of course this is of little concern as, if it doesn’t, it has a further seven annual opportunities to do so and adds 12% to the potential total return for each year it defers.
The latest issue of the 10:10 Plan, which uses Goldman Sachs International (A+ by Standard and Poor’s) as the counterparty offers three options. Option 1 is offering a return of 8.2% for each year, providing the FTSE 100 Index closes at or above 102.5% of the initial index level (recorded on 4th October 2019) on the second anniversary, or subsequently at or above an annually reducing reference level thereafter, reducing by 2.5% for each year held, which ends at 82.5% on the tenth observation, if not matured sooner. Option 2, which requires the FTSE 100 Index to be at or above the Initial Index Level is offering a return of 10.94% simple for each year and Option 3 which requires the FTSE 100 Index to be at or above 105% of its Initial Index Level on any annual observation date from the second anniversary to trigger a return, will pay out 13.47% for each year held, on a successful maturity.
The 10:10 Plan is a market innovation introduced by us here at Lowes Financial Management in cooperation with Mariana Capital. Another structured investment related solution that we have brought to the market is the Lowes UK Defined Strategy Fund which draws upon all of our expertise in this sector and is effectively a basket of many such investments, diversified across a range of counterparties and market observation dates. This is an opportunity for investors to benefit from the returns generated by multiple structured investments but within a platform friendly fund structure, which provides daily liquidity and is more tax efficient. Details of every trade are published on the fund website: UKDSF.com where you sign up to be notified whenever there is a portfolio event, such as when a new trade is added. The Lowes UK Defined Strategy Fund is now available on a range of investment platforms including Aegon, Zurich and OMW Wealth. To see the full range of platform availability, please click here.
Details and literature for the latest 10:10 Plans can be found at www.CompareStructuredProducts.com/Products
Details and literature for the Lowes UK Defined Strategy Fund can be found at www.UKDSF.com
Disclosure of interests: Lowes has provided input into the concept, development, promotion and distribution of the 10:10 and is investment manager for Lowes UK Defined Strategy Fund. Lowes has a commercial interest in these investments as a result of its involvement. Where Lowes is involved in advice on these investments to retail clients, it will not receive benefit of any fees for its involvement, other than those fees payable by the client to Lowes. Lowes has robust systems and controls in place to ensure that it manages any actual or potential conflicts of interests in its activities.
The value of investments can fall as well as rise. You may get back less than you invested.
The 10:10 Plan carries risk to your capital.