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% (equivalent to 3% 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, 51% of respondents felt that sustainable investing was important to them.
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