We do not nomally recommend structured products, preferring to use asset allocation to adjust the risk profile of the portfolio to suit the client’s objectives and attitude to investment risk.
With the volatility we are currently experiencing in the stockmarket, it may be worth a second look at some of the structured products on offer at the moment. One that catches our attention is the RBS Autopilot Deposit Growth Plan 2.
The interesting feature of this plan is that it aims to track an index of four market sectors (developed equity market, emerging equity market, property equity market, and commodity market) when they are in an up-trend; and when they are identified to be in a falling trend the index will instead link to UK RPI to protect against inflation.
There is 100% capital protection if held until maturity, and it is eligible for the Financial Services Compensation Scheme (FSCS) up to £85,000 per person.
The return is 100% of the return from the relevant indices. It is taxed as income unless held in an ISA, SIPP or by a Charity.
The investment period is from 7 November 2011 to 6 January 2012.
Risk warnings
This document has been prepared based on our understanding of current UK law and HM Revenue and Customs practice, both of which may be the subject of change in the future. The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. Cantab Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. As with all equity-based and bond-based investments, the value and the income therefrom can fall as well as rise and you may not get back all the money that you invested. The value of overseas securities will be influenced by the exchange rate used to convert these to sterling. Investments in stocks and shares should therefore be viewed as a medium to long-term investment. Past performance is not a guide to the future. It is important to note that in selecting ESG investments, a screening out process has taken place which eliminates many investments potentially providing good financial returns. By reducing the universe of possible investments, the investment performance of ESG portfolios might be less than that potentially produced by selecting from the larger unscreened universe.
