Each portfolio option gives clients access to institutional-level rather than retail structured product markets, the firm said.

Investec Wealth & Investment has introduced a new structured product service featuring a choice of two portfolio mandates with investment minimums of £250,000 ($306,000).

The Defined Returns Structured Product Portfolio is medium/high risk and aims to provide returns in various equity market scenarios, although these are likely to be negative if markets fall substantially (i.e. between over 40 to 50 per cent) and do not recover over a period of time. Net of management fees, it targets a UK base rate return, plus 3 per cent.

The Diversified Growth Structured Product Portfolio, meanwhile, is high risk but intended to provide greater potential for capital growth.

The sensitivity of the portfolio to the underlying equity markets is likely to be nearer the higher end of the 35 to 75 per cent range at the initial investment stage, and perhaps even greater than 75 per cent, the firm said. The target return, net of fees, is the UK base rate plus 4 per cent.

The portfolios are managed by IW&I’s structured products team.