Investec W&I launches structured product platform

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Investec Wealth and Investment (IW&I) is launching two new investment platforms that give its clients access to structured product portfolios.

The investment management firm’s Structured Product Service (SPS) gives “wealthier clients of financial advisers” a choice of two pre-determined portfolios offering different levels of risk and return. Minimum investment for both products is £250,000.

The Defined Returns Structured Product Portfolio is a medium/high risk product designed to provide a positive return in multiply equity market scenarios, with the warning that returns “are likely” to be negative if equity markets fall substantially, between more than 40 per cent to 50 per cent. Target return, net of management fees, is the UK base rate (currently 0.25 per cent) plus three per cent.

The Diversified Growth Structured Product Portfolio is a high risk product designed to provide “greater potential for capital growth” than the Defined Returns product – although the level of risk is also greater. Target return, net of fees, is the base rate plus four per cent.

All portfolios are centrally managed by IW&I’s specialist structured products team. The minimum investment for both products is £250,000, and each will only be made available to clients following the completion of a rigorous due diligence process.

IW&I said the two options allow clients to choose the product that best suits their “personal circumstances, risk appetite and investment objectives”.

Both SPS products give clients an investment opportunity in the institutional as opposed to retail structured product markets, which, IW&I said, has two advantages:

Cost savings because fees charged in the retail market are higher.
Access to liquid secondary markets, so investors’ cash isn’t locked in for a set period.

“Combining these structured products in the context of a portfolio will allow investors to diversify risk and maximise potential returns,” IW&I said.

Both products will be managed by IWAI’s structured products team and investors will only be accepted once “rigorous due diligence” has taken place.

Mark Stevens, head of intermediary services at IWAI, said: “We have extensive experience of the structured products market and, following thorough consultation with advisers, we believe now is the right time to launch a dedicated service.

“Managed correctly, structured products can provide the outperformance and portfolio protection that many advisers and their clients are looking for.”

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