Anyone seen Investec's offerings?

[kurt535]

Im tempted..i think...must be worth a few k in each?

http://www.investecstructuredproducts.com/content/...
http://www.investecstructuredproducts.com/content/...

for more risky play:
http://www.investecstructuredproducts.com/content/...

infact there are loads!
https://www.cavendishonline.co.uk/investments/othe...

[R8Steve]

There's a LOT better funds/bonds out there.

I don't like anything that i am locked into though, especially for such a long time.

[anonymous-user]

R8Steve said:

There's a LOT better funds/bonds out there.

I don't like anything that i am locked into though, especially for such a long time.

Could you give some examples of 'no loss' bonds with a better return pls? TIA.

[kurt535]

yes +1. be interested to see what other options are please without me having to spend stupid hours on internet again

[NickCQ]

These kinds of structured products marketed to retail investors usually end in tears.

[R8Steve]

Badda said:

R8Steve said:

There's a LOT better funds/bonds out there.

I don't like anything that i am locked into though, especially for such a long time.

Could you give some examples of 'no loss' bonds with a better return pls? TIA.

You think 4% PA non compounded interest 'IF' the FTSE rises is good?

Bearing in mind -
› The Plan must be held for the full 6 year term, unless the Plan matures early.
› There is potential that you could only receive back your initial deposit.
› Inflation will reduce what you could buy in the future.
› The tax treatment of the Plan could change at anytime.

I'll not even go into the risky option listed.

I will give some examples of what i think are far better options later today when i have some time.

[NickCQ]

R8Steve said:

I will give some examples of what i think are far better options later today when i have some time.

I would just buy the FTSE 100 index. This product gives you capped upside but no downside protection to compensate for that (i.e. you bear 100% of the value decline in the FTSE 100 below today's level). The 'coupon' is a non-compounding 9% that you receive in 6 years time, so is equivalent to a 7.5% annualised return (my quick Excel IRR calc, apologies if not right).

Also, the FTSE 100 index does not take into account dividend distributions, so in this product you actually do worse in downside scenarios. SImply put, if you held the FTSE and it went down 5% one year, you'd get the divi yield of 4-5% so have a net loss around zero. In this product you lose the whole 5% as that's what the derivative is referencing.

Therefore, the only time this plan outperforms is if the FTSE 100 index returns between 0.1% and 7.5%, but I imagine there are huge fees to Investec hidden in the contract that suck up a bit of that gain anyway. 7.5% is almost bang on the long-term equity return (dividends and capital growth), so just buy the index and pay 6 bps fees to Vanguard or whatever it is these days.

[xeny]

Badda said:

Could you give some examples of 'no loss' bonds with a better return pls? TIA.

It is a "loss" product though - you'll be losing due to inflation if the payout conditions aren't met.

4% is poor, not having a compound return is a play for the unwary over 6 years that's a 24% return vs a 26.5% return.

It reads like a product designed to provide the money to mitigate the risk in someone else's equity investment to be honest.

[R11ysf]

The returns on these are just so poor now they aren't worth it. I did a lot of these when they were 14% per year and could kick out after year 1, 2 or 3. They have got worse and worse to the point that they just aren't providing value with the extended lock-in period and lower payments. Your upside isn't worth the protection you are getting for the guaranteed payback.

[NickCQ]

R11ysf said:

guaranteed payback.

Guaranteed as long as (a) the index rises and (b) investec doesn’t go bust.