Societe Generale has unveiled a range of three structured products, aimed exclusively at financial advisers.
The ‘UK Four’ products will be focused on a six-year growth period. Societe Generale has appointed the products’ plan manager as Walker Crips Structured Investments.
Counterparty risk will be diversified across Aviva, Lloyds TSB, Barclays and Royal Bank of Scotland.
All the products link their performance to the FTSE 100 and have the potential for early maturity at the end of years two, three, four or five prior to the six-year maximum maturity.
The SG Kick-out Plan has a target of 10 per cent, the SG Step Down Kick-Out Plan has a target of 7.5 per cent and the SG UK & US Step Down Kick-out Plan has a target of 9.25 per cent. The SG UK & US Step Down Kick-Out Plan is also linked to performance of the S&P 500.
The products’ launch follows research in July 2013 on behalf of Societe Generale which found 75 per cent of investors believe the FTSE 100 will be the same or higher over the next 6 years.
Additionally, the survey found investors instinctively felt safer with investments that could spread counterparty risk, even if that means receiving a lower potential return.
Societe Generale managing director of UK IFA sales Zak de Mariveles says: “The research clearly shows that counterparty risk remains a key consideration for UK retail investors and that investment products that are able to diversify credit exposure across multiple institutions are seen as an attractive proposition
“At Societe Generale we have the expertise and capabilities to meet this client need. The UK Four products not only aim to meet the diversification needs of investors, but also provide the potential to significantly exceed investors’ expectations on returns.”