Options

Manage risk with Options, which you can use to help you achieve more predictable investment returns.

Managing risk is an essential element of any investment. It’s even more important when you’re investing important sums. As their name suggests. Options are versatile in the extreme. They can help with:

Asset allocation
Enhanced income generation
Portfolio insurance
Speculation/leverage
Tax planning

Get more predictable returns
Incorporate your SIPP and ISAs into Options investments

More predictable returns

Our discretionary Options portfolio service can help produce more predictable returns from unpredictable asset classes.

It is most suited to sophisticated high net worth investors willing to commit at least £250,000.

Investec Wealth & Investment is a Euronext NYSE Liffe partner and is one of the largest UK providers of Options services to private clients.

Risk warning

Options, Futures, and Contracts for Difference may not be suitable for everyone. You should avoid these products unless you understand them properly and appreciate the extent of your exposure to risk. You can get more information in our Options Terms and Conditions.

Options can fluctuate in price and value. Not only could you lose the entire amount you originally invested, but you may also have to pay more later.

Uses of Options

Speculation
If you want to leverage your investment potential, then Options is the way to go. However, Options trading is speculative, even if you’re prepared to take on high-risk investments. We’d recommend that you commit no more than 10% of your available funds.

Tax planning
You can use Options within portfolios to manage your capital gains tax planning. They can also help generate higher investment income.

SIPPs and ISAs
Most SIPP providers accept our Options service. You can also incorporate ISAs into it.

Asset allocation
Make instant asset allocation decisions without changing the overall makeup of your portfolio.

Investment management
Options allow you to use covered writing strategies to achieve more predictable returns from your investments.

Portfolio insurance
Options can help to provide downside protection for portfolio clients.

Fees and charges

Portfolio value	Annual fee
On first £500,000	1.50%
On next £500,000	1.25%
Thereafter	1.00%
Minimum charge	£250
We charge an annual fee based on the overall value of the portfolio (including ISAs, options and SIPPs if applicable) plus a small charge per transaction. You pay quarterly in arrears in February, May, August and November and pro rata depending on the agreement’s start date.

Contract charges
All transactions are subject to a minimum contract charge of £25. In addition, for Option transactions, there is a charge of £2.50 per option contract, both opening and closing.

Utilisation fees
We charge 0.5% each year (calculated daily, debited quarterly in arrears) on the Investec margin requirement.

Acceptable assets held as collateral

Acceptable collateral	Discount
Cash lodged as collateral	Nil
UK Government Gilts	5%
Ordinary shares held in FTSE 100 & FTSE 250	20%
FTSE 100 & FTSE 250 I shares	20%
We will consider other assets on a case-by-case basis.

Nominee transfers
We do not charge for transfers into our nominee service. However, we may charge £10 per holding for transfers out of our nominee company.

Overseas
We make an additional contract charge of £35 for transactions that we have to settle on overseas exchanges and which have a consideration value of more than £2,000.

We reserve the right to recover custodial charges when stock is held with overseas depositories and when we incur charges collecting foreign dividends.

There is a £10 IRS Qualified Intermediary charge for any US stocks held.

Unit trusts
For unit trusts and OEICs, if we receive any marketing allowances at the time of dealing, we will pass them on to you as a discount in the price of the holdings.

Stamp duty
Stamp duty of 0.5% is payable on UK equity purchases.

Stock Exchange Levy
This is payable on certain UK transactions greater than £10,000. It funds the Panel on Takeovers and Mergers and will be shown as PTM Levy on contract notes if applicable.

VAT
We will add VAT at the standard rate to charges where applicable.. No VAT is payable on contract charges

The next steps

Call Bruce Williams on 0151 237 1162 or send an email
We’ll ask you some questions about your clients' financial situation and investment objectives.
We’ll then discuss how options can help to achieve the investment objectives within a given risk framework.
We’ll arrange a meeting with you and the client, if requested, in order to complete paperwork.