04 Aug 2020

Investec Structured Products unveils pioneering ESG-linked deposit product

Investec Structured Products (“Investec”) has launched the UK’s first retail ESG-linked Deposit Plan. The product is part of Investec’s 100th launch, marking 12 years in which Investec has offered consistently-available Deposit Plans and Investment Plans, with 1,175 matured products and no capital loss.

The FTSE4Good 6 Year Deposit Plan 1, the first of its kind, is a 6 year fixed term Deposit Plan tied to the FTSE4Good UK 50, an index made up of the largest 50 companies in the FTSE which meet defined ESG criteria.

 

The product returns 18 per cent (equivalent to 3 per cent per annum) if the FTSE4Good UK 50 is higher at maturity than at its starting level. If the FTSE4Good UK 50 is lower than or equal to the starting value at maturity, the investor only gets back his or her initial deposit. The Plan offers a sustainable alternative to Investec’s long-standing FTSE 100 6 Year Deposit Plan. 

 

Harris Gorre, Investec’s Head of Financial Products, commented:

“Over the course of 100 launches, we have constantly focused on improving every aspect of our products to set new standards for the industry. Today’s announcement is one of a number of innovations that we have made, but is one that is particularly meaningful for us and of course our clients, who can achieve interest rates 2-3 times greater than in cash while investing in products that improve the world around them.”

 

Responding to an independent survey of retail investors carried out on behalf of Investec in April 2020, more than half (51 per cent) of respondents felt that sustainable investing was important to them.

 

Tanya Dos Santos, Global Head of Sustainability at Investec, continued:

“Partnering with our clients and incentivising them to be more responsible and impactful is a critical element of our sustainability strategy. We see this pioneering product as another significant step in using our financial expertise to address socio-economic issues and create a more sustainable world.”

Investec CEO, Fani Titi is one of 30 global leaders that make up the CEO Alliance of the United Nations Global Investors for Sustainable Development who aim to accelerate action to scale up sustainable investment globally.  

 

What is the FTSE4Good UK 50?

The FTSE4Good UK 50 Index tracks the performance of the shares of the 50 largest companies listed on the London Stock Exchange which also demonstrate strong Environmental, Social and Governance (ESG) practises.

 

The stocks that make up the FTSE4Good UK 50 Index generally also feature in the FTSE 100 Index, since both indices track the shares of the largest companies listed on the London Stock Exchange.  

 

FTSE Russell, which oversees the indexes that carry its name, gives an ESG rating to companies based on how well they manage Environmental, Social and Governance issues.

  • Environmental issues include how well the company manages its water usage, how much it pollutes, and how effectively the company combats climate change.
  • Social issues include how responsible the company is to its customers, how well it complies with labour standards, and the company’s policies towards human rights and its communities.
  • Governance issues include how effectively the company prevents corruption, the quality of its management and how transparent the company is with its taxes.

 

Returns are in no way guaranteed and some of our Plans will place capital at risk. Past performance is not a guide to future performance. 

Investec Structured Products is a trading name of Investec Bank plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered under Financial Services Register reference 172330. Registered and incorporated in England No. 00489604. Registered address is 30 Gresham Street, London EC2V 7QP.

For further information please contact:

Luke O’Mahony, Investec (Public Relations)

020 7597 5261 

[email protected]

 

Investec partners with private, institutional and corporate clients to offer international banking, investments and wealth management services in two principal markets: South Africa and the UK, as well as certain other countries. The group was established in 1974 and currently has approximately 8,300 employees. In 2002, Investec implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. In March 2020, the Asset Management business was demerged and separately listed as Ninety One.

 

This press release is issued on behalf of Investec Bank plc. Registered address: 30 Gresham Street, London, EC2V 7QP. (Reg No. 489604). 

 

Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.