Structured Product  

Hilbert launches two structured products

Hilbert launches two structured products

Hilbert Investment Solutions has launched two structured products with different risk profiles designed for investors who are seeking quarterly returns.

The first product is linked to the performance of the FTSE 100 index and aims to return 2.05 per cent per quarter while the second is linked to the performance of both the FTSE 100 and Euro Stoxx 50 indices and aims to return 2.33 per cent per quarter.

The UK Conditional Quarterly Autocall Issue four and Conditional Quarterly Autocall Issue 13 have both been added to Hilbert’s Income Series, they both have 10-year investment terms and are available through either direct investment, an Isa or via a client's Sipp.

The counterparty to both issues is Citigroup Global Markets.

Ian Lowes, managing director of Lowes Financial Management and founder of StructuredProductReview.com, said it was good to see Hilbert sticking to their knitting and continuing to launch products on similar terms to meet demand. 

Mr Lowes said: "While there is no easy way to produce high income and whilst I accept that many advisers and investment managers support this type of investment, I have not been a fan of income contracts that have conditional parameters, for the simple reason that they may, by definition, stop paying income, potentially for a long time. 

"The latest offers from Hilbert will pay a very high level of income provided the FTSE 100 index (for the UK Conditional Autocall) or both the FTSE 100 and Eurostoxx 50 indices (for the Conditional Quarterly Autocall) trade within 80 per cent and 105 per cent of the levels recorded at commencement of the plan. 

"If however, one index is below the 80 per cent level on a quarterly observation date no income will be paid for that quarter. 

"Whilst the indices rising away from that threshold will reduce the risk of no income being paid, if they are more than 5 per cent higher on any quarterly observation date, after the first year, the plan will terminate returning original capital. 

"Obviously, as the dual index version is dependent on the worst performing index the income it offers is greater than the FTSE 100 only version – a function of risk and reward."

emma.hughes@ft.com