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Investec’s New Structured Product Plans and …… 3 common questions answered

We are often asked for a breakdown of past performance returns in respect of the delivery of returns so, where possible, we provide track record performance.  (We must state that past performance is not a guide to future performance).

Common Investor Questions

Question 1 – What have Investec’s Plans delivered in terms of results historically?

Answer – Provided by Investec.

Investec launched into the Structured Product market in 2008 and since then have issued 1083 products with an average return of 5.46% p.a. for Deposit plans and 9.14% p.a. in respect of Investment plans.

Another key point is of those plans which have matured over this time frame, zero have resulted in any capital loss for investors.

Click the link to read more about historical performance: https://www.investec.com/en_gb/investment/structured-products/valuations.html

Question 2 – Can you explain the scale of distribution from Investec in relation to Structured Products?

Answer – Provided by Investec.

Since 2008 £6.2 billion has been invested in Investec plans.

100,000 investors have invested into Investec plans.

Investec have received 25 best provider awards from 7 industry bodies.

You may wish click the link to read more about the new range of Structured Investment Plans and Structured Deposit Plans : https://www.bestpricefs.co.uk/investec-structured-products/

https://www.bestpricefs.co.uk/blog/investec-launch-new-tranche-of-structured-deposit-structured-investment-plans/

Structured Deposit Plans

We often write to express to investors why they should consider Structured Deposit Plans that carry no capital risk within an investment portfolio (FSCS Protection up to £85,000 for eligible investors) .

We are often asked to explain how this works in practise.

Question 3 – Can you explain how a Structured Deposit Plan works?

Answer – Structured Deposit Plans are cash alternatives.  For eligible investors, the Financial Services Compensation Scheme (FSCS) provides protection of up to £85,000 in the same way as money in a bank account.

Although the return is generated/dependent upon an investment index, most commonly the FTSE 100, there is no ‘market risk’.  The outcomes are binary.

If the market is above the pre-defined level, the investor gathers the coupon (Headline rate).

If the market is lower than the strike level, investors receive a full return of capital – with no upside (return).

We trust the answers to the questions will help.

New Plan details

We attach details to remind you about the new range of Plans launched by Investec.

Despite difficult pricing conditions, Investec have managed to more or less maintain the headline rates across their range of Plans. Notably, they have been able to improve the headline rate on the FTSE 100 Defensive Kick-Out Deposit Plan 15 to 4.00% p.a.

They have also changed the payoff of their 6 Year Defensive Deposit Plan by adding a minimum return. See below for more details of this change, as well as key dates and links to the rest of their Plans.

6 Year Defensive Deposit Plan: Addition of a Minimum Return

For their new range, they have changed the FTSE 100 6 Year Defensive Deposit Plan. The Plan is now called the FTSE 100 6 Year Defensive Deposit Plan 25 (Min Return version).

They have changed the return trigger from 75% of the initial index level to 100% of the initial index level.  As a result, they have been able to add a minimum return of 9% (1.5% p.a.) which will be paid regardless of the performance of the FTSE 100, in order to give investors more reassurance in falling markets.

https://www.bestpricefs.co.uk/structured-products/ftse-100-6year-defensive-deposit-plan/

FTSE 100 6 Year Defensive Deposit Plan 25 (Min Return version)

  • If the FTSE 100 is higher than 100% of its initial index level after 6 years, the Plan will pay 18% (3% p.a.)
  • If the FTSE 100 is equal to or lower than 100% of its initial index level after 6 years, the Plan will pay 9% (1.5% p.a.)

Key dates and deadlines

  • ISA transfer applications – 22 November 2019 (applications to be received with ourselves for processing by 15 November 2019
  • Direct and new ISA applications – 13 December 2019 (applications to be received with ourselves for processing by 6 December 2019)
  • Start date/Strike date – 23 December 2019

Investec’s current range of Plans – click the link to take you directly to the full range of plans: https://www.bestpricefs.co.uk/investec-structured-products/

Deposit Plans

  • Growth and Income Plans available
  • Capital protection and FSCS protected up to £85,000 (subject to eligibility)
  • 3, 5 and 6-year terms available

Investment Plans

  • Growth and Income Plans available
  • Partial capital protection
  • 6 and 8-year terms available

We work closely with Investec and other quality Structured Product Plan managers (if we don’t list them – we don’t rate them!) where we intend to increase our communication to investors about the value of inclusion into portfolios, with the required consideration to risk and balance.

Don’t Forget the Risks

https://www.bestpricefs.co.uk/investec-structured-products/#risks

As with all forms of investment there are risks involved.  Structured Investment 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.

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.

As always, if you require advice simply get in touch.

We assure you of our best and focused attention at all times.

Warmest Regards.

Best Price FS Team

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