Investec Structured Products launches new Boutique range

28 July 2010

New Portable Beta - Emerging Markets Plan
New Geared Returns Plan

Investec Structured Products (‘Investec’), the award winning provider, announces the launch of its new Boutique Plans. The Plans in the new Boutique range will be offered on an ad-hoc basis to realise opportunities across different markets and include alternative pay-off profiles. The Boutique investments will have a minimum initial investment of £25,000 and the initial collection will launch on 28 July 2010. Owing to the nature of the investments, the Plans will have shorter offer periods.

Investec has already developed a successful retail Structured Products business supporting intermediaries across the UK. This new venture is simply an extension of this designed to support and tailor products for wealth managers and intermediaries delivering investment services on a fee basis.

The first two plans to be offered on a four week basis from 28 July 2010 are:

Portable Beta – Emerging Markets Plan – a 5 year securities-based Plan offering uncapped participation in the MSCI Emerging Markets Index where downside risk is linked to the FTSE 100. There are two versions of this Plan offering different asset providers and participation rates:
Option 1: Investec Bank offering 110% uncapped participation
Option 2: Santander UK offering 100% uncapped participation

In addition the Plan will aim to return the initial investment provided the FTSE 100 at maturity is greater than or equal to 50% of its starting level. Where the FTSE 100 is more than 50% below its starting level at maturity, capital will be reduced by 1% for every 1% fall.

The Santander UK offering is based on an issuance by Abbey National Treasury Services plc, a subsidiary of Santander UK plc.

Geared Returns Plan – a 3 year securities-based Plan offering two investment options, each with the alternative asset provider, Santander UK.
Option 1: a payment of 33% (30% Santander) provided the FTSE 100 at maturity is greater than its starting level.
Option 2: a payment of 18% (16.5% Santander) provided the FTSE 100 at maturity is greater than 50% of its starting level.

In addition the Plan will aim to return the initial investment provided the FTSE 100 at maturity is equal to or greater than 50% of its starting level. Where the FTSE 100 is more than 50% below its starting level at maturity, capital will be reduced by 1% for every 1% fall. Details can be found on the Boutique Plans page.

In addition to the new Boutique collection of Plans, Investec will be offering a specialist service to support discretionary clients and private banks. Investec will offer a range of structured opportunities on a tactical basis where market conditions present themselves. Registered clients will receive regular offers and market updates directly from the structuring and trading desk. Details can be found on the Structured Opportunties page.

Gary Dale, Head of Intermediary Sales, Investec Structured Products said, “We have been working on our new Boutique collection for a while now and it reflects the feedback we have received from a number of high profile wealth managers. The success of our retail channel has given us sufficient scale to develop a more focused and tactical business to support different distribution channels with very specific investment needs. Our Boutique investment solutions are designed primarily for wealth managers, within an RDR framework, with any fees being simply deducted upfront from the client’s investment.

“Our initial Boutique offering includes our first ‘portable beta’ structure which allows investment advisers to offer upside linked to the MSCI Emerging Markets Index without adding any additional equity market risk over and above the FTSE 100. By structuring the Plan in this way, we are making emerging equity markets available to clients who would otherwise be unwilling or unable to take on the additional risk commensurate with a traditional long only investment. In addition our Geared Returns Plan offers payments when the FTSE 100 is either greater than 100% of its starting level under Option 1, or 50% of its starting level under Option 2. This offers a diversified return profile to wealth managers looking to possibly utilise this structure to compliment long only strategies elsewhere in the portfolio.”

“It has been our intention for some time to focus more on the service we offer discretionary asset managers and private banks. To develop this market we now have a dedicated site where we anticipate offering structured opportunities on a tactical basis when market conditions present themselves. The success of our retail Plans has highlighted the popularity of structured investments and the importance placed on them within the portfolio. Also our experience tells us that structures, such as auto-calls, are widely used within the discretionary space. “

For further information contact

Citigate Dewe Rogerson:
Patrick Evans Tel: 020 7282 2913
Alistair Kellie Tel: 020 7282 2850
Jo Skinner Tel: 020 7282 1092

Investec Capital Markets:
Alex Wilson Tel: 020 7597 4471

About Investec Structured Products

Investec Structured Products was voted by IFAs for the second year running as the ‘Best Structured Product Provider 2010’ at the Professional Adviser Awards. In 2009 we won ‘Best Structured Product Provider’ at the Financial Times and Investors Chronicle Investment Awards 2009. We won ‘Best Service to IFAs’ and ‘Best Income Product’ for our FTSE 100 Bonus Income Plan at the PPR Professional Adviser Structured Products Awards 2009. These add to our existing Professional Adviser ‘Best Structured Products Provider’ 2009 voted for by IFAs at the Professional Adviser Awards 2009 and the Professional Adviser PPR ‘Best Income Product’ 2008.

Investec Structured Products is part of the Capital Markets division and a trading name of Investec Bank plc. Investec Bank plc is Authorised and Regulated by the Financial Services Authority and part of the Investec Group of companies (Investec).

Investec is an international specialist banking group that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa and Australia as well as certain other countries. The group was established in 1974 and currently has approximately 5,900 employees.

Investec focuses on delivering distinctive profitable solutions for its clients in five core areas of activity namely, Private Client Activities, Capital Markets, Investment Banking, Asset Management and Property Activities.

In July 2002 the Investec group implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. Management and staff own approximately 15% of the equity share capital of the group.

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Investec Structured Products launches new Boutique range