How to Invest
How can a client invest?
Products are available across all major platforms and life companies and we are happy to add other companies on request. Occasionally, a client may wish to invest outside of this route. In order to do so, they would need to have a broker/nominee account, either at a private bank or a stock broker. The client is not able to deal directly with the product issuer but may instruct their bank or broker to trade on their behalf.
What is the minimum investment amount?
The minimum investment amount does vary from issuer to issuer and it is important to check at the time of investment. Normally the minimum investment permitted is at life company level. For example, where the minimum investment has been set at 50k by the life company, an individual client may instruct them to invest £12k, but should the total investment by that life company for that particular investment be less than £50k then a client’s trades may left unfilled. To mitigate the possibility of a trade being rejected, instructions should be issued as early as possible so that we can monitor the total trades. Investments would normally be denominated in whole 1,000s (so £1,000 or $1,000 etc.) so subscriptions should be rounded down to the nearest whole 1,000.
Can clients get their money back before the end of the fixed term?
Structured investments are designed to be held for a fixed term and clients need to be happy that their money may be tied up until the end of that term. Post investment, the structured product will be priced daily and this does allow the client to redeem the investment prior to its maturity should they so desire. The price is determined by a number of factors: the time to maturity, the market levels at the strike date, current market conditions, including prevailing interest rates and volatility. A more detailed explanation of what affects the secondary market price can be found in “Structured Products – what affects the valuation”. Clients should always have access to their investment if needed.
What’s the process for creating a bespoke investment?
We have gained a good appreciation of the mainstream requirements for the target market. We also regularly deliver specific investments for a more limited audience as well. The needs of the investors would have to be identified by the adviser as the first step and the key information provided – e.g. what level of capital protection is required, what is the currency, what style of return – income or growth etc. From the basic premise we can work with the adviser to add flesh to the bones of their propositions and deliver a unique and exclusive solution for their clients. Advisers should contact Head Office directly to discuss how we can help you to build “something special”. Please note that with a bespoke issue, a minimum of 250k or more will normally be required to ensure good value for investors, the level being dictated by the complexity of the product, the underlying investment links and the issuer we are working with.