HSBC Asset Management is launching a protected Isa product offering 100% capital protection and 75% ...
HSBC Asset Management is launching a protected Isa product offering 100% capital protection and 75% of the growth in the FTSE 100 over five years, writes Robert Stock.
This is a rollover vehicle for the group's first Pep Plus product launched in 1996 and maturing on 26 June this year. It will also be called Pep Plus.
The offer period on the product runs from 26 June to 26 July. HSBC is only accepting rollovers, not Pep transfers or Isa money, and it hopes to capture at least 60% of the £103m assets held by the 11,000 investors in the first of the three tranches of the original Pep Plus plan. The second two tranches of the original Pep Plus are to mature in October and December and the group is planning rollovers for these as well.
The new Pep Plus is designed to closely resemble the first Pep Plus plan, according to Mike Smith, head of professional adviser services at HSBC Asset Management. Assets of the plan consist of zero coupon bonds to provide the return of capital and a series of options on the FTSE 100 to generate growth.
Investors can role over 100% of their capital and gains from the previous plan or elect to rollover just a proportion of them. The original plan allowed investors to invest both their £6,000 Pep allowance as well as their £3,000 single company Pep Allowance.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till