HSBC launches new onshore investment bond

In a significant new venture for the IFA market, HSBC has launched an innovative investment bond with open architecture investment choice. The Onshore Investment Bond offers whole of market choice with almost 2000 funds - OIECs and Unit Trusts - from over 100 fund managers.

Aimed at clients who want a professionally managed, whole of market solution for their investment portfolios, HSBC is initially making available two versions of this Bond: ‘Select' for fee-charging advisers and ‘Flexible' for commission-priced advisers. Both versions are designed for maximum tax planning flexibility and can be used for a range of trust, tax and business planning scenarios. Furthermore, the facility to take regular withdrawals from their investments provides investors with a tax-efficient way to supplement their income.

The low cost and simple administration structure of this Bond will appeal to advisers. The Select version has no initial or exit charges and no annual management fee and the Flexible version has low reduction-in-yields (the measure used by advisers to compare charges between companies). With both versions, fund charges apply according to the underlying funds held by each investor. Advisers can make applications, construct clients' portfolios and monitor them via the bespoke HSBC extranet - bond.hsbc.co.uk. IFAs can also make applications by telephone.

Tim Potten, head of life investments, HSBC Insurance, commented: "We believe we have developed a truly dynamic set of products that will enable advisers to offer customers a highly competitive bond with whole of market fund access, whether they choose to take fees or commission."

The Bond has a minimum investment level of £5,000 and can be used to insure up to ten lives from a minimum age of three months - with no upper age for the Select bond. IFAs wishing to contact HSBC for further details should visit bond.hsbc.co.uk.