HSBC Asset Management is adding a new income Pep to its capital protected range in a bid to provide an alternative to corporate bond Peps.
The HSBC Capital Protected Income Pep is capital protected regardless of stock market performance and aims to generate 7.5 per cent a year over a five year term.
Investors can utilise both their £3,000 single company and £6,000 general Pep allowances to invest a total of £9,000 in the current tax year.
The initial charge is 5.75 per cent maximum with a 0.75 annual charge.
The Pep opens on 12 November and the closing date for applications is 15 December.