View more on these topics

Incapital kicks out from Greater China

Incapital Europe has brought out a structured product linked to the performance of the Hang Seng China Enterprise and MSCI Taiwan indices for five years.

Capital accumulator kick-out plan – Greater China series III has an early maturity feature that is triggered by the performance of the indices from year one.

At the end of year one, investors will receive 13 per cent growth plus their original capital returned in full if both indices are at or above their initial values. If this condition is not met, the product will continue for another six months, when 19.5 per cent growth plus capital is paid if both indices are at or above their initial values.

The product will continue on the same basis for the rest of the term, paying 6.5 per cent for every six months it is invested. The maximum potential growth is 65 per cent at the end of five years.

If the indices are never at or above their initial values during the term, investors will still get their original capital back provided neither index falls by more than 50 per cent without returning to at least its initial value.

This product is unusual in linking returns to the Hang  Seng China Enterprises and MSCI Taiwan indices. Some investors may find it useful to gain exposure to the rapid growth in these regions, while hedging their bets in case growth starts to slow. The potential for an early kick-out every six months from year one could also appeal, as this increases the likelihood of investors getting out early with a return on top of their original capital.

However, the indices will be unfamiliar to many investors and some will not like the uncertainty about when the product will end.


Bridge the gap

Improving financial literacy will help us back to sustained growth


FSA calls for tougher insider trade penalties

The FSA has called for tougher insider trading sentences and changes to discount guidelines to move the UK closer to the US model, according to the Financial Times. FSA interim head of business conduct Margaret Cole has urged the Government to increase the maximum sentence for insider dealing from seven to 10 years. Cole says: […]

Alliance Trust wins vote on discounts

Alliance Trust, Britain’s largest investment trust, has won a vote which tried to force it to control its share price discount on an automatic basis and abandon provisions to scale up votes from its savings scheme members. At the £3.2 billion trust’s annual general meeting today, the shareholders were asked to vote on the two issues […]


The stupid assumptions of economists

Economics 101 has a lot to answer for. The simplistic view of human nature taken as axiomatic by economists has been adopted by regulators and policymakers with consequences ranging from bad to awful. Among the stupidest assumptions of Economics 101 is that people make their decisions independently. Economists know this is not the case but […]

Finding security in bond markets

Martin Foden, head of credit research at Royal London Asset Management, explores the role of secured bonds, considering the impact of default and the characteristics of secured bonds versus supranationals and highlighting some examples. He also examines the evolution of the credit market and rating agency inefficiencies. Read the article in full: The value of […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm