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Investec Structured Products launches 8:8 Plan

30 January 2018

Investec Structured Products has collaborated with Lowes Financial Management to launch a new offering to the market, the 8:8 Plan. 

The 8-year maximum term investment, offers the potential of 3.75% return for every six months held (7.5% per annum) from the second anniversary, provided the FTSE 100 Index is no more than 8% down from the initial level, as recorded on 8 March 2018. Hence, the 8:8 Plan.

The Plan is designed to mature on one of 13 anniversaries from year 2 onwards. If at the second anniversary the Index is at 92% or above the initial level, it will return the original capital plus a gain of 15%, being 3.75% for each six-month period to that date.

If it does not mature at that point, then the investment continues until the index is above 92% at one of the six-monthly observation points and maturity occurs, or the 8-year period ends. In the latter case, if the index is still more than 8% lower the capital is returned with no gain, unless the FTSE 100 is more than 40% down from the starting level, in which case capital will be lost, tracking the fall in the index on a 1:1 basis.

The risks are to the capital and that Investec Bank, the counterparty to the Plan fails or becomes insolvent. Investec Bank is currently rated A2 with a positive outlook by Moody’s and BBB+ with a stable outlook by Fitch.

Lowes Financial Management has been researching, recommending and investing in structured products for some 20 years and publishes regular performance data alongside its list of ‘Preferred’ plans, being those products it considers offer the best prospect of delivering positive returns for investors.

Ian Lowes, managing director of Lowes Financial Management (pictured), said: “We are now in the ninth year of a bull market, and as Independent Financial Advisers we wanted a product that had the potential for a decent rate of return, with enhanced maturity opportunities, hence the 6-monthly observation points, and contingent capital protection built in. The 8-year period means that should a market correction occur, there is a longer time frame in which the Index might recover to above 92% of the starting level and for the investment to deliver a positive return for investors.

“We are delighted to have been able to work with Investec Structured Products in designing the 8:8 Plan. We believe it is a compelling offering which sets the bar for the structured product sector in 2018.”

Robbie Briginshaw, Head of UK retail structured sales at Investec said: “Investec Structured Products has been delivering a range of consistently available and innovative structured deposits and investments, covering a variety of risk and return profiles, since 2008.

“The 8:8 Plan, designed in co-operation with Lowes, draws upon our 10 years of product development and Lowes’ experience and proficiency in researching and selecting products, and further expands the choice of products we now offer exclusively to the intermediary market.”

The Plan is now open for investment. The closing date for ISA transfers is 8th February 2018 and for Applications, 1st March 2018.

Professional Paraplanner