Hilbert Investment Solutions have recently launched the 3 Stock Defensive Auto call – Issue 2, the second tranche of their structured product linked to the performance of three FTSE 100 stocks, Barclays Plc, Aviva plc & Vodafone Plc, aiming to provide investors with a return of 18.15% per annum, even if the share prices were to have fallen up to 40%.
Issue 2 of their 3 Stock Defensive Auto call features a 7-year investment term but can mature early if the closing levels of all 3 stocks are at least equal to the required reference levels on any of the 6 monthly measurement dates from the 7th of July 2020.
Should this occur then investors will receive a fixed growth payment and the repayment of their investment in full at that point. Should the product not auto call in the first year the reference level for the auto call descends each year until the final valuation date.
Investor’s capital will be at risk if, on the final day of the 7 years, at least one of the 3 stocks is more than 50% down from its Opening Level, 7 years prior. The repayment of the initial capital will be reduced by the same percentage amount that the worst performing of the 3 stocks has fallen in value from its Opening Level on the start date to its Final Level on the final valuation date. For example, if you had invested £10,000 into the Plan and Barclays had fallen by 30%, Aviva 45% and Vodafone 51%, then repayment of your investment would be reduced by 51%, to £4,900.
Some of the factors influencing the selection of these 3 stocks are that they are not currently trading at historical highs, in fact they are at the lower end of where they have been trading historically, thus in theory having less chance of falling below the 50% capital protection barrier and also being within the reference level for an early maturity. Additionally, city analysts have price targets above the current share price on all three of the stocks.
DON’T FORGET THE RISKS
As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.
Please ensure that you view the plan documents for full details of the features and the risks.
The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.
To access the literature for this product please click on the following link:
Please contact us to discuss any aspect of the products.
Richard and the Best Price FS Team
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