Investec is set to launch its One Year Range Deposit structured products into the retail market.
The products are designed to deliver returns based on the performance of the FTSE 100 index over the course of the product's 12 month investment term.
The two versions of the product, the Bull and the Bear, allow advisers to choose a pay-off profile based on their view on the FTSE100 index over the next 12 months.
The Bear Deposit pays 8% provided the FTSE100 remains within the range 3500-5500, 6% if the index remains within 3250-5500 or 4% if the index remains within 3000-5500.
The product pays the better of the returns at maturity however, if the index falls outside the widest range at any time, no interest is payable and capital is returned at maturity.
The Bull Deposit offers the same annual interest payments with the following ranges: 3500-5500 pays 8%, 3500-5750 pays 6% and 3500-6000 pays 4%.
The returns on maturity are based upon the range in which the FTSE100 trades throughout the investment term.
Both products have a minimum Investment of £10,000 and provide a full capital guarantee. The adviser commission is 0.5%.IFAonline
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