Verbatim Asset Management, the investment arm of the SimplyBiz Group, has launched a growth structured deposit product in partnership with Goldman Sachs International Bank which will act for the first time in the UK as a deposit taker and Meteor Asset Management which will act as the plan manager of the product.

The six-year deposit is linked to the Verbatim Multi-Asset Growth Indexx, an index comprised of five funds managed by Verbatim Asset Management and wiill pay a 1.5% gross fixed interest payment after one year and 80%/90% participation on the performance of the uunderlying at maturity. The Verbatim Deposit Growth Solution is available for cash ISAs (individual saving accounts), ISA transfers and pension schemes including self-invested personal pension (Sipps). Verbatim acts as a supply chain management company for advisers providing them with planning tools and investment solutions including a range of funds as well as a discretionary service, based on the same investment philosophy, according to Dan Russell, managing director of Verbatim.

“Advisers are increasingly looking to our risk managed fund solutions as a way of meeting their clients’ expectations. However, feedback from over 1000 advisers at a recent series of workshops told us that there is a demand for simple solutions that offer growth with capital protection and income with capital preservation,” said Russell. “The idea is to expand that investment philosophy into structured deposits to allow advisers to use structured products without breaking their underlying investment philosophy. If an adviser believes in using risk-managed funds for their clients they can now access that via a capital-protected wrapper without giving up their investment ethos and mandate.”

Structured deposits in the UK, said Russell, use single vanilla indices and are mostly linked to the FTSE100 or the Eurostoxx 50 indices. “Our deposit is taking into account the real world in which financial advisers’ work which is not simply tracking an index but using genuine risk-managed fund solutions with a clear mandate from a strong investment committee,” said Russell. “Our new deposit allows them to use the same philosophy when using structured products.”

The deposit, which has been developed by Verbatim and Indexx Markets following a period of consultation with advisers, marks an extension of Goldman Sachs’ structured product offering into the UK structured deposit market.

“To have the reputation and balance sheet of Goldman Sachs behind our first deposit is very important for us as we build a complete range of solutions for advisers,” said Russell. “There is an appetite for structured solutions and we want to participate in the market with innovate solutions that respond to our adviser client’s requirements.”

Advisers who want to recommend the product must first go through a structured deposit and deposit market continuing professional development course provided by Verbatim. According to Verbatim, 500 advisers have already completed the course and will be fully accredited to consider recommending this product from launch.

The new structured deposit, said Russell, will expand Verbatim’s product range and offer an ideal option for investors who have no capacity for loss, whilst still providing potential for fund growth.

The product was launched on July 29. Investors will have to pay 3.1% when they first purchase the product. There will also be an annual charge of 0.5%.

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