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.