Hill Samuel Asset Management is strengthening its investment-trust range with a low-cost Pep which invests in three investment trusts.
The Pep covers the Hill Samuel UK Emerging Companies, German Smaller Companies and Lloyds Smaller Companies investment trusts.
The move is partly an attempt to reduce the discount to net asset value on the trusts – which stands at around 17 per cent – by attracting new investors.
Marketing director Rob Page says: "The aim is a combination of meeting customer demand for a savings vehicle and a very effective way of helping reduce the discount."
Initial charge is 3.75 per cent and annual 1 per cent. Commission is 3 per cent but there is no renewal payment.
Minimum investment is £50 a month or £1,000 lump sum.
HSAM's move comes after other providers, including Commercial Union and GA Life, shelved Pep products over fears that the planned Individual Savings Account may lead to Peps being scrapped.
But Page insists that Peps have enough of a shelf-life left to be attractive to investors.