Arcus Partners, an appointed representative of Dura Capital, has launched a new 6-year ESG-linked structured investment plan.
According to the UK Structured Products Association, 95% of UK retail investors want at least some of their investment portfolio to have an ESG focus and over 60% want at least half of their portfolio to have an ESG focus – an increase of over 20% in the last two years.
Arcus’s new investment will focus on both performance and environmental factors, with returns linked to the performance of the Solactive Transatlantic Biodiversity Screened 150 CW Decrement 50 Index, which measures the performance of companies that have been screened based on their potential impact on biodiversity.
The plan offers a potential fixed return equivalent to 10.30% a year, to be paid when the plan matures. It will mature if the Biodiversity Index closes at or above its start level on annual dates from the end of the second year. If the plan does not mature early, the return will be paid if the Biodiversity Index closes at or above 85% of its start level at the end of the six-year term.
The plan has also been created as a ‘Positive Impact Note’ from Societe Generale, meaning Societe Generale will apply an amount equivalent to the total invested to finance environmental and social activities. These projects include renewable energy, water management and pollution prevention, as well as social projects such as employment generation through SME financing, affordable housing and access to education.
Zak de Mariveles, CEO of Dura Capital, said: “There’s a clear need for ESG-linked investments among UK retail investors. This plan, the first ESG-linked investment from Dura Capital, offers an exciting new solution to meet this need.”
Peter McAuley, partner at Arcus Partners, added: “Arcus is focused on delivering value for money propositions to the market. We have watched the demand for ESG linked investments grow and have spent some time seeking feedback from IFAs to find a product which matches our values with those of advisers and clients.
“We believe that this product does exactly that. Not only will it help advisers meet client needs, but via Societe Generale’s Positive Impact Notes programme, clients can be confident that their investment is genuinely contributing to the efforts to improve our environment.”
