HSBC Asset Management is launching a protected technology Isa to attract
investors wanting to participate in the tech boom without the risk.
The Dublin-based closed-end Safety.net fund will protect 90 per cent of
the initial capital while offering a 100 per cent return on all gains on
the portfolio through the use of derivatives.
The fund will have a life span of three years and will focus on 20 of the
leading global stocks including AOL, Vodafone, Microsoft, Sony, Cisco
Systems and Nokia. It is only available until June 1.
Growth will be calculated using the discreet quarterly returns of the
portfolio averaged at the end of the three-year period.
It is available as a maxi Isa or a share investment. Initial charges are
capped at 5.25 per cent with an annual management charge of 0.5 per cent.
Commission is 3 per cent.
HSBC claims it is the first protected technology Isa although Scottish
Life International has recently launched an offshore protected fund
tracking the Nasdaq index.
HSBC Asset Management head of savings & investments Alan Gadd says:
“Technology investment is now a rich seam to mine for new growth
opportunities but many investors understandably remain on the sidelines,
concerned at the higher level of risk and volatility.
“This offers exposure to technology with a significant reduction in the risk.”