The FTSE 100 Defensive Growth Plan 1 and the FTSE 100 Defensive Kick-Out Plan 1 both are designed to deliver solid returns to investors if the index rises steadily over the next six years.
The Defensive Growth Plan 1 will deliver investors a fixed return of either 36% (Investec option) or 28% (Financial Institution option), provided the index is higher than 50% of its starting level after 6 years.
The product is designed for those investors who have a medium attitude to risk, while the Financial Institution option is there for those who are more risk-adverse as well.
The Defensive Kick-Out Plan 1 can mature from year 2 through to 6 and offers investors annual returns equivalent to 8.5% if the FTSE is higher than varying percentages of its starting level. After 2 years, this is 100% but this decreases by 5% each year to reach 80% in year 6.
Investec said this product is higher risk and is therefore more appealing to those who seek greater returns, even if this means putting their capital on the line.
Defensive demand
“Through conversations with intermediaries we have recognised and responded to the need to expand and further consolidate our range of defensive plans, with the addition of these two new defensive products,” said Colin Brockman, head of intermediary distribution at Investec Structured Products.
“This is due to the growing demand for these simple, defensive options at a time when both investors and advisors are thinking of ways to produce returns in today’s uncertain markets.”
Investec Structured Products offers a wide range of continuously available structured deposits and investments covering a variety of risk and return profiles. These plans are designed to complement investment portfolios and are distributed exclusively through financial advisers.
Investec is an international specialist bank and asset manager that provides a diverse range of financial products and services to a select client base in three principal markets, the United Kingdom, South Africa and Australia.
