Halifax Share Dealing launches Income Generator 2
Halifax Share Dealing has announced the launch of a new FTSE 100 structured product. The Income Generator 2 is designed to provide an attractive annual income for experienced investors.
The Halifax Income Generator 2, which is available until 16 April 2012, offers investors the opportunity to achieve a fixed income of 7.20% per annum over a 5 year term. The return of capital at maturity is dependent on the performance of the FTSE 100.
Key features:
The Income Generator 2 is a sterling denominated note with a five year term
Designed to provide annual income payments equivalent to 7.20% gross pa
Repayment of the initial capital is subject to the performance of the FTSE 100
Minimum investment of £1000 up to maximum of £250,000
Issued by Lloyds TSB Bank plc (rated Standard & Poors A, Moody's A1 and Fitch A, 29 March 2012)
The note is eligible to be held in a Stocks and Shares ISA for customers who are looking to invest their annual tax free allowance. As the offer period spans two tax years (2011-12 and 2012-13), it means that investors can invest up to £21,960 in the product tax free.
Damian Stansfield, Managing Director, Halifax Share Dealing explains, "Structured products are a relatively new addition to our product range, and offer an attractive income option to experienced investors looking for a longer term investment to complement their portfolio. This product is suited to a more practised investor who understands the potential risk of losing some, or all, of their capital and is looking for a product that will provide an attractive fixed return."
"The timing of this launch also provides customers with a rare opportunity to make the most of their Stocks and Shares ISA allowance for both this tax year and next."
The note offers an attractive enhanced annual income for investors who are prepared to accept risk to their capital. For example, investors that invest £5000 in the Income Generator 2 could expect to receive an annual gross income of £360 each year of the five year term.
The Income Generator 2 is designed to pay back the initial capital at maturity if the final index level is at least 50% of the initial index level. If it is lower than this, the amount of capital will be reduced by the percentage decrease in the index. For example, if the index fell by 25%, investors would receive the full capital amount on maturity. However, if the index fell by 70%, investors would only receive 30% of their initial investment. Customers who invest within a Stocks and Shares ISA have no further obligation to pay tax.
As a 2% fee is already built into the product design, there are no separate charges or fees payable when investing in the note. This means that investors receive 7.20% pa on the full amount that they invest. However, for those looking to invest tax free, there is an annual ISA fee of 0.05% per month (min £2.16, max £18.33) paid half yearly.
Halifax Share Dealing's first structured product, Halifax Income Generator 1, was launched in January 2012.
Customers wishing to apply for the product should visit halifax.co.uk/sharedealing.