Good MorningDue to the success of Investec’s retail and corporate deposit products, as well as their Structured Products, Investec Bank plc is highly liquid and has limited need for new funds this year.
Structured Products (where Investec Bank plc is the counterparty) have always been in high demand, but currently they do not have the need to match the demand from their investors. Because of this they will only be releasing a limited amount of Structured Products backed by Investec Bank plc this year.
Given the challenges that investors face in this low interest rate environment, they have decided to allocate this limited capacity to their Deposit Plans. Although they are aware that Investment Plans designed by Investec are highly sought after by investors, in order that they have a continued range of Investment Plans in a current partnership with BNP Paribas who will be the issuer for their Investment Plans.
BNP Paribas is a major global financial institution with over 198,000 employees worldwide, and is a higher-rated bank than Investec from a counterparty perspective. As a result, their Investment Plans will now offer investors the ability to diversify their credit exposure, without foregoing the comfort and familiarity that comes from Investec’s product design, Plan literature and servicing.
Investec know how important consistency is to their investors so they have kept the products in their Investment Plan range unchanged, except for the changes mentioned below:
This is what has changed in their latest range of Investment Plans:
- The counterparty is now BNP Paribas
- As a result of the higher credit rating of BNP Paribas, headline rates have fallen.
- Kick-out triggers are now “greater than or equal to” (as opposed to “greater than”)
- Their Investment Plans are no longer available to investors in the Isle of Man, Guernsey or Jersey
They may need to close the offer early if the range becomes oversubscribed. In the event that they close their Investment Plans early, they will provide you with notice three days in advance of the closure.
Their Deposit Plans are unaffected. Investec Bank plc will continue to be Deposit Taker for our Deposit Plans
Please note returns are in no way guaranteed. Please refer to the plan literature for a full description of the benefits and risks associated with these plans.
Key dates and deadlines
- ISA Transfer Applications 23 October 2020
(applications to be received by Best Price 16 October 2020)
- Direct and ISA Applications 6 November 2020
(applications to be received by Best Price 2 November 2020)
- Start Date 16 November 2020
To view the new range of Plans please click on the following link:
Don’t Forget the Risks
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.
Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquid or counterparty exposure.
At the Best Price FS price point (when combined with our smiley and helpful service) the Investec plans are certainly worthy of consideration for inclusion within investment portfolios.
Simply get in touch if you wish to receive regulated advice in relation to the ‘suitability of the plans to meet your investment needs’.
Richard and the Best Price FS Team