Structured Product  

Hilbert launches dual-indexed product

Hilbert launches dual-indexed product

Hilbert Investment Solutions has launched a dual-indexed structured product which targets a return of 2 per cent per quarter.

The ‘Conditional Quarterly Autocall issue 11’ is linked to the performance of both the FTSE and the EUROSTOXX 50 indices.

The product is the latest release in Hilbert’s income series. It has a 10 year investment term and is available through direct investment, Isa investment, or through a client’s self-invested personal pension.

The product's counterparty credit rating is A+ with S&P and the minimum investment amount is £5,000.

Steve Lamarque, founder of Hilbert, said: "Dual-index products such as ‘Conditional Quarterly Autocall issue 11’ are popular in the UK because they can potentially provide investors with a quarterly boost to their income.

"The product has more ‘moving parts’ than a traditional single index issue but is consequently able to provide a higher coupon payment for investors who are willing to take on the additional risk."

Laith Khalaf, senior analyst at Hargreaves Lansdown said he does not generally like structured products like this one because they can be complicated and their costs "are often unclear".

He said: "With a ten year investment horizon it’s worth investors considering putting money to work in the equity market, which yields around 3.5 per cent to 4 per cent in dividends alone, though clearly capital can fall.

"It’s very difficult for an investor in this sort of product to understand if, what and when they will get paid, particularly when payments are linked to two separate stock market indices."