Investec kickouts outperform FTSE100

Structured Product plans with a kickout feature sold by Investec Structured Products (ISP) in the UK continued to perform well, consistently maturing above the FTSE 100 index and providing investors with significant returns, according to recent performance data released by the bank.

“When compared with the FTSE 100 Total Return Index, our latest FTSE 100 Enhanced Kick-Out plan matured delivering in excess of double the performance of the index over the same period,” said Gary Dale, head of intermediary sales at ISP.

Investors made substantial returns from ISP’s five-year Enhanced Kick-Out Plan 40, which matured early, after one year. The FTSE 100 index-linked plan delivered 10.25% after one year, a big improvement on the 4.12% growth of the FTSE 100 Total Return over the same period.

Equally, the FTSE 100 Defensive Kick-Out Plan 5 matured after two years, paying out 14%. This collateralised plan offered investors a defensive trigger and downside protection.

Similar yields were offered by a deposit version of the plan. “As an alternative to cash deposits/fixed-rate savings bonds, structured deposits have the potential to add real value to a portfolio,” he said. “With simple annualised returns of up to 12% pa, compared with average five-year savings rates of 3.22% pa, the FTSE 100 Kick-Out Deposit Plan 32 is a great example of how structured products can be a real asset in a wider portfolio.”

The FTSE 100 Kick- Out Deposit Plan 32 matured after two years and paid investors up to 12%. This is in contrast to the average five-year deposit rate available at the time of investment which was a comparatively meagre 3.22%.

The bank’s 3 Year Deposit Plan 29 matured, paying investors up to 5.83% pa (option 1) and 4.83% (option 2). This second option entailed a minimum return. Both structures significantly beat the average prevailing three-year deposit rate (3.41% pa).

Industry Insights

Data Insights

Webinars

Special Reports

Market

Investec kickouts outperform FTSE100