Investec Bond..Is it safe?

tinker1

Can you tell me if an investment is safe in the Investec Global Strategy Fund. It is invested in their sub fund, the Global Bond Fund. If the company Investec were to fail would the units in this bond fund still be safe? I realise hte value of the units go up and down with the market.

Alternatively what would be the position if I were to hold units in their cash or deposit fund. Does the £50k gaurantee rule then apply. The company was registered in the Channel Isles but now registered in Luxembourg.

Han_naH

I'm about to invest in their High 5 Account with Investec (UK) Ltd. This company is covered by the 50K deposit protection.

It tracks the best rates and is 3 months notice.

So you should only put your money into a UK registered arm of an international big player like Investec, for the FSC protection.

Look at the example of Kaupthing and Icesave savers in the Isle of Man and Guernsey - they aren't protected at the moment.

Investec themselves are based in South Africa, but are pretty large.

As I understand it, mutual funds aren't affected by the demise of the provider. E.g., M&G or L&G collapsing leaves the funds intact as far as I know... there was something about this in the FT moneyshow podcast... anyone?