CompaniesApr 24 2013

Launch Pad: Structured products

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Gary Dale, head of intermediary sales for Investec, said the range would be available until 24 May.

Structured Investments facilitating adviser charging:

FTSE 100 Defensive Kick-Out Plan 9 – potential for maturity at the end of years two, three, four, five or six with a payment equal to 8 per cent a year, not compounded, if the FTSE 100 is higher than 90 per cent of its starting level.

FTSE 100 Defined Returns Plan 3 – 67.5 per cent return if the FTSE 100 is higher after five years, with potential maturity at the end of year three and a return of 40.5 per cent.

UK Five option – 50 per cent return if the FTSE 100 is higher after five years, with potential maturity at the end of year three and a return of 30 per cent.

Structured Investments – execution only including initial commission payments:

FTSE 100 Enhanced Kick-Out Plan 36 - Investec option: potential for early maturity at the end of years one, two, three or four with a payment equal to 8.5 per cent a year, not compounded.

FTSE 100 Enhanced Income Plan 3 – Investec option: fixed monthly payments of 0.48 per cent.

Structured deposits facilitating adviser charging:

FTSE 100 3 Year Deposit Plan 41 – 13.5 per cent return if the FTSE 100 is higher after three years.

FTSE 100 Kick-Out Deposit Plan 36 – potential for maturity at the end of years two, three, four, five or six with a payment equal to 4.6 per cent a year, not compounded, if the FTSE 100 is above the starting level.

Adviser view

Nick Evans, financial planner for Hertfordshire-based One Life Wealth Planning, said: “Structured products are becoming more popular in the retail investment market and the level of variety available makes them more difficult to compare. Investors should always be mindful of the underlying risks of such products and look beyond the advertised return if certain criteria are met.”