HSBC has confirmed the details of its Tessa-only, stock market-linked Isa rollover vehicle, the HSBC...
HSBC has confirmed the details of its Tessa-only, stock market-linked Isa rollover vehicle, the HSBC Performance Plus Isa, which will be open from 2 January 2001, writes Robert Stock.
The HSBC PP Isa has been designed to accept the £9,000 original capital from maturing Tessas and is offering a maximum potential gain of 60% on top of capital invested during its five year lifetime.
If the maximum potential gain on the HSBC PP Isa, which was designed to closely resemble its precursor, is realised, it would translate into final pot of capital of £14,400. The minimum guarantee of 125% return on capital of the original tranche in January 1996 has been replaced with a 100% capital protection.
Alan Gadd, head of savings and investment at HSBC Asset Management, said that this resulted from the current comparatively low interest rate environment as well as the increased cost of derivatives.
IFA commission on the product is 2%. Charges are built into the product design. The first tranche, which will be followed by further monthly tranches, closes to investors on 23 February 2001.
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