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The ‘Tempo pledge: Stated terms or better’ is an industry first which allows us to improve the terms of a plan above those stated in plan brochures during an offer period, for the benefit of investors, if the stock market and other factors mean that we can do so.
For example, if a plan brochure detailed a particular option as offering a potential return of 10% p.a., if stock market movement and other factors meant that we could increase this during the offer period, the actual terms could become, say, 10.25% p.a., which would be confirmed following the start date.
The pledge is designed to give us the opportunity to pass the benefit of stock market movement which could result in improved terms for investors during an offer period on to investors in our plans. The terms of our plans will always be at least those stated in our plan brochures – the pledge can only ever increase and improve the terms of a plan above the stated terms.
An example of the ‘Tempo pledge: Stated terms or better’ in action was a bespoke version of our Long Kick-Out Plan. The professional adviser and clients involved with the plan expected the plan to offer 10.7% p.a., but stock market movement and other factors allowed us to improve this during the offer period, to 10.9% p.a., which was confirmed following the start date.