Investec Wealth & Investment, a UK-based private client wealth management firm, has rolled out a new structured product service that will allow customers to choose between the two portfolios based on their personal circumstances, risk appetite and investment objectives.
The new offerings are Defined Returns Structured Product Portfolio for medium/high risk clients and Diversified Growth Structured Product Portfolio for high risk customers.
The Defined Returns Structured Product Portfolio aims to provide a positive return in multiple equity market scenarios. The company said that returns are likely to be negative if equity markets fall substantially.
The Diversified Growth Structured Product Portfolio aims to offer greater potential for capital growth, targeting a return of the UK base rate plus 4%.
Both portfolios, which will have a minimum investment level of £250,000, will give customers access to institutional structured product markets. They will also provide an access to liquid secondary markets unlike structured products traded in the retail market.
Investec Wealth & Investment head of intermediary services Mark Stevens 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.”
Investec Wealth & Investment associate portfolio manager and head of structured products Peter Tasou said: “We adopt an active rather than passive approach to structured product portfolio management as, contrary to popular perception, they are not simply ‘buy and hold’ investments.
“Portfolios will be managed by a team with a high level of experience of derivatives and bank credit, the two key components of any structured product. The team understands how to optimally design structured products, construct and manage portfolios and factor in the changing risk parameters of each product over its life cycle.”