GE Financial Fund Management, the newly formed sister company to bonds specialist GE Financial Assurance, has taken its first steps into the highly competitive Pep market with the launch of its EuroPep I.
Following the lead set by Legal & General and HSBC, the Pep invests in a Dublin based closed end investment company. This allows the full single company and general Pep allowance to be combined, thus permitting investments of up to £9,000 per investor.
GE Financial believe the Pep will have widespread appeal, in light of the recent stockmarket volatility, as it guarantees the return of the initial investment plus 130 per cent of any growth in the FTSE Eurotop 100 stockmarket index. However, this is subject to a maximum of 175 per cent of the initial investment.
According to the company it initially intends to concentrate on the Pep market and the EuroPep I is anticipated to be the first of four subsequent launches aimed at raising around £30m. But the company has not ruled out entering the actively managed fund market rather than just concentrating on guaranteed products.