Investec capital-protected income plan allows investors to recover missed annual payments

Investec Structured Products has issued the FTSE 100 Target Income Deposit Plan 1, a non-commission product suitable for fee-based advisers that offers an annual income stream while protecting initial capital against market risk

The FTSE 100 Target Income Deposit Plan 1 plan is a six-year capital-protected deposit product that provides an annual interest payment of 4.5% if the closing level of the FTSE 100 index remains above 90% of its initial level on every annual observation date. In a low-rate environment, the note would appeal to investors who are looking for capital protection and potential income well above the risk-free rate.

The annual interest payment of 4.5% is paid if the closing value of the FTSE 100 is