Van Lanschot Bankiers, the oldest independent bank in The Netherlands, is pitching a structured deposit to Dutch high net worth (HNW) clients. The Van Lanschot Index Performance Deposito, which requires a minimum investment of €25,000, is linked to the domestic Amsterdam Exchange Index (AEX).
"We wanted to offer our clients the option to earn a higher interest over a relatively short period," said Jurgen van Wijngaarden (pictured), a senior analyst working with structured products at Kempen Capital Management - the subsidiary of Van Lanschot which is structuring the product. "An important starting point for us is that [Van Lanschot Index Performance Deposito] is a safe and simple product which is easy for our clients to access."
The product, which is continuously on offer and which will be re-launched every week, is available with two options - one with a six-month term and the other with a 12-month term.
Although Van Lanschot has opted for the AEX as the underlying index, additional products linked to other indices have not been ruled out. "Depending on client feedback, we can offer tailor-made solutions linked to other indices," Van Wijngaarden told SRP.
Although Kempen is involved in the design of the structures, its role is strictly behind the scenes. "The client deals only with Van Lanschot in the role of adviser, distributor and as issuer of the deposit," he said.
Van Lanschot is not the first provider to launch index-linked deposits in The Netherlands. ABN Amro issued a similar product, the AEX Spaarrekening, which has returned 2.96% per annum on average since it was first introduced in January 2006.
Van Lanschot's index-linked deposits are subject to the Dutch deposit guarantee scheme which guarantees up to a maximum of €100,000 per person per bank.