Investec have recently launched their new tranche of Structured Investment and Structured Deposit products.
We have displayed the full list of plans available for investors to consider:
Defined outcomes in uncertain times
With unprecedented geo-political risk on the horizon there appears to be increased appetite for plans that can produce positive return with minimal growth, and at the same time provide downside protection. This is the exact area that Structured Products can offer attractive risk adjusted returns by ‘contract’ focusing on meeting investors’ needs and expectations.
Structured Investment Products
Investment market volatility has produced an increase to headline rates of return offered.
The FTSE 100 Enhanced Kick-Out is on its 88th version and is the longest standing investment plan within the Investec range having launched over a decade ago. The plan has a very simple structure in terms of its mechanics; it’s a 6-year term, has a coupon of 10.25% net for charges, and can mature on any anniversary from year one onwards if the FTSE 100 is higher than its initial index level (strike point). The upside is clearly attractive versus the underlying index as it has the ability to produce an attractive upside and only needs the market to be a single point higher. For investors with subdued growth prospects on developed equity markets this can be an attractive alternative to funds, be them active or passive in nature.
The two key risk considerations remain the counterparty and market risk within the plan. This product is not covered under the financial services compensation scheme and so has full credit risk with Investec. If the bank defaults Investors could lose some or all of their money. The plan also has a 60% barrier at the end meaning if it has failed to kick out on all six opportunities, if the market is above 60% of its starting level investors will receive a full return of capital, and if it is lower they will lose on a 1-1 basis. The market risk element is a clear consideration, as with all investments, but is also a benefit of structured products, as it provides some form of protection in a falling market.
Structured Deposit Products
Pressure has been applied to Deposit rates, with a number of headline rates reducing.
Investec bank still has a strong appetite to raise deposits and have a full suite of products from 3-year, 6-year, kick-out, and income; with returns of up to 7% per annum and no risk to capital. Structured Deposits are fully covered under the Financial Services Compensation Scheme up to £85k, and although their upside is linked to the FTSE 100, they have no market risk and cannot lose money if the FTSE finishes lower at contract termination. With interest rates remaining at such low levels these can provide a great way of investors achieving a positive real return without taking on risk to capital.
The plans are available as direct holdings, but also through ISAs, ISA Transfers, SIPPs, Offshore Bonds, Corporates, Charities and Trusts. For further information on Investec and our latest product range, please visit the website at: https://www.bestpricefs.co.uk/investec-structured-products/
Don’t Forget The Risks – Please read our ‘Don’t Forget the Risks Section’ by clicking on the following link: https://www.bestpricefs.co.uk/investec-structured-products/#risks
As always, we must point out that the promotion of products does not represent ‘advice’ Advice is always specific to the needs of the individual/entity. If you require advice in relation to financial matters, simply get in touch.
Best Price FS Team