Skandia International has reportedly rolled out Investec’s offshore bond-wrapped structured product.
MoneyMarketing has reported Skandia has developed an internal fund that will allow UK investors to hold the capital-at-risk investment in an offshore bond wrapper.
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The Investec autocall structured products will be offered every seven to eight weeks, according to the publication.
Skandia lead international specialist Paul Schrijver was quoted by the publication as saying that the structure means the investment is not subject to capital gains tax.
"Utilising an offshore bond wrapper together with the pre-defined pay-off profile of a structured investment offers advisers and investors yet more choice in the way they design their investment portfolios," Schrijver told the publication.
The first is the RS GBP Investec FTSE 100 Autocall Fund Issue 1 that provides a 7% annual return over as potential six years’ investment to the investors.
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By GlobalDataThe company said that in the event of FTSE 100 surging higher than its starting point at the end of year two onward, the autocall starts in and the capital is returned together with 7% interest for each year invested.
Furthermore, if the FTSE stays above 85% of its starting level when the investment matures after six years, the investment pays back the capital and a 42% return, while a decrease in the FTSE 100’s value between 85% and 50% of its starting value after six years will return the capital without interest.
The first issue, which is open until 25 April requires minimum £25,000 investment for the platform, with a minimum for the structured product fund itself of £5,000.
