View more on these topics

HSBC takes straightforward approach as it enters guaranteed product arena

HSBC is entering the guaranteed income bond market and expects to unveil its first offering in the new year.

Speaking at the Structured Retail Products Adviser seminar in London, HSBC Asset Management head of UK structured and specialist products Chris Taylor said while income products are a holy grail for the structured market, the current pricing environment means manufacturing them remains challenging for providers.

Taylor said just 1 per cent of recent structured product volumes are income-oriented because it is difficult for traditional product structures to provide good value for investors in the current market.

Taylor pointed out that income products are mainly for retired or retiring investors who can least afford to risk their capital or their income stream, yet many structured products targeted to meet their needs fail on one or even both these levels.

He said products offering unreliable income streams or those with, for example, 30 per cent soft protection are not necessarily good enough for investors. Instead, HSBC will bring out a guaranteed income bond product as a solution for IFAs to offer their income-seeking clients. This will compete with major players in the guaranteed income market, where HSBC believes choice has been limited.

Taylor told the seminar: “HSBC Asset Management will offer a straightforward guaranteed income bond solution from the new year, utilising HSBC Life. This will be the first time this wrapper will be available outside the internal distribution of the HSBC Group and is representative of the way forward for HSBC Asset Management.”


A&L will cut principal numbers after M-Day

Alliance & Leicester will be restricting the number of principals it deals with after M-Day, Money Marketing has learned. National accounts manager David Rhodes is understood to have told several companies that it will exclude from M-Day that it may restart business with them in January. The managing director of one excluded IFA firm says […]

Sharp increase in online business – GMAC-RFC

Ninety eight per cent of all intermediaries are conducting at least some of their business online and nearly half of those questioned stated that they had seen their on-line activities more than double, according to new research from GMAC-RFC. Ninety four per cent of intermediaries reported their online business increasing in the last year, with […]

Merger will move life industry further from its roots

It has been interesting to see yet another “oldie” – LIA executive member Brendan Power – coming out against the merger with Sofa (Money Marketing, September 30). It would be interesting to poll the former executive members as a group as there must be well over 100 of us now and we can claim to […]

Day Dawns for Quantum leap into commodities

Structured product provider Dawnay Day Quantum has created a capital-protected bond linked to a basket of eight industrial metals and energy-related commodities for a four-year term. Few people have direct exposure to commodities and are more likely to gain exposure through shares. However, Dawnay Day Quantum believes investors holding stocks such as BP and Shell […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment