Investec Wealth & Investment is launching a dedicated service offering wealthier clients of financial advisers access to two portfolios of structured products.
Medium/high-risk clients can invest in the Defined Returns Structured Product Portfolio and for higher-risk clients, the Diversified Growth Structured Product Portfolio is available.
The portfolios will grant investors access to institutional structured product markets, therefore enjoying cheaper fees than the retail space and secondary market liquidity advantages.
The defined returns portfolio will seek a target return of UK base rate plus 3 per cent, net of fees while the growth portfolio will aim for base rate plus 4 per cent.
Their sensitivity to the underlying equity market will be approximately 35 per cent to 75 per cent, and at the higher end of this range for the growth portfolio, at times surpassing 75 per cent.
IW&I’s specialist structured products team will manage both portfolios.
Minimum investment for both products is £250,000, subject to clients passing a rigorous due diligence process.
IW&I associate portfolio manager and head of structured products Peter Tasou says: “We have very close relationships with product providers, who respond to our needs.
“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.”